frank who knows what value we don't know how the german banks are bell uing the great ponds and their balance sheet right now and a german or french or other european bank can buy a greek government bond say fifty percent. pledge this to the european central bank and get all euro's it up and at full value on the dollar and get free money by speculating we don't know whether the german. so the french banks are carrying this greek debt market value or a nominal face value so germany is itself is being sacrificed. to the banks and i don't think you can say to the interest of the banks of the one percent is the interest of germany unless you're redefining germany and redefining europe as a kind of neo feudal oligarchy society run by the back so i guess why angela merkel herself is losing electoral support in germany the whole political spectrum in europe is being thrown into disarray by the fact that the words left and right mean when you have the whole issue basically one of finance finance cuts across the political spectrum from left to right it cuts across the spectrum of what is germa

and get free money by speculating we don't know whether the german banks or the french banks are carrying this three debt market value or a nominal face value so germany is itself is being sacrificed. to the banks and i don't think you can say that the interest of the banks of the one percent is the interest of germany unless you're redefining germany and redefining europe as a kind of neo feudal all of the arctic society run by the back so that's why angela merkel herself is. losing a lot carol support in germany the whole political spectrum in europe is being thrown into disarray by the fact that the words left and right mean when you have the whole issue basically one of finance finance cuts across the political spectrum from left to right it's like it cuts across the spectrum of what is germany well as france that is europe and really has the class war back in business in a very different way than north or sane in times past it's a class war banks against all the rest of society trying to grab all of the property and the political spectrum hasn't been able to deal with this except tha

eight banks failed the test. one german bank would have been on the list, but the bank pulled out in a dispute over the methodology. the test stimulates a deep economic recession in the european union. the banks had to have enough capital reserves to cover bad loans. share prices tumbled and unemployment tumbles. the institutions need to tap into their reserves. banks have to have a reserve cushion of at least 5% of their capital. below 5% means they fail. the banks that did not pass now have until the end of the year to increase their capitalization. they include institutions in spain, greece, and austria. how significant are the results of the stress tests. we spoke to our correspondent. >> the european commission will be relieved that so many so-- so -- so few banks failed the capital requirements. the message from the european commission is that this is an early warning system, no need to panic. this is a warning to banks to get more capital injected so they can survive the long term. it is all about transpare

so both households and companies in the banks then grow in rather fast. yes this year two thousand and eleven it's not so fast as the falls and it's because people begin to spend money you know buying goods and services there now not so much afraid about the future as in the previous crisis time you said that you're a. seven percent inflation id end of the year. in the first six months of the year the inflation has already reached five percent so are you sure that in the that in the remaining five months or so it will be two. now more than before because five for the you know it's a brilliant it's very good result i'm a so forth it could be around five point two. you see that is seasonal very much seasonal phenomena so normally in the russian economy the first model for the year generally got your own thirty percent of all the yield inflation really what happened because i think if you will celebrate the new year away because of two friends first all the tariffs for for electricity gas water supply and doubtless you know change transform once a year genera

versus the bigger banks. the small banks are given preference with regard to who gets examined and the ability to overturn rules -- no, and this is one of the things people may misunderstand. things that threaten the system, they could be a pattern like subprime loans, particularly subprime loans issued by nonbanks and this bill covers, regulates for the first time those nonbanks. let's go back over this. i do want to address the single member commission. the one issue they have found, it was originally proposed by ms. warren. we had hearings. we had conversations. and every single consumer group that we dealt with, the gentleman from wisconsin mentioned his supporters, wasn't a single consumer,, the consumer federation, et cetera, they persuaded me that a single member would be better than a commission. i acknowledge we had hearings and i listened to people who were for it. here's the debate. we have everybody who was against establishinghis in the first place, who were against it in principle and believe the

inadvertent comments from the coffers of the greek banking system of the occupied banking system if you combine the gold with the loan you will come to think which in today's prices is more than five hundred sixty billion years. of course the question is what does this goal mean is these legally enforceable now ok well let me let me just interject there for a second because you're saying ok the agreements between that were made have been abrogated they don't exist anymore but here you have a george papyrus government signing off on the memorandum what the i.m.f. a foreign banking institution giving them rights above and beyond the greek constitution they are going to take critics call to greece is called as part of the debts that they had imposed on grace it's the same tale as you just described to me that the nazis did they think they loaded greece of the bunch of debt then they think they raped greece now the i.m.f. is loaded with of all a lot of debt and they're going to economically rape grace they're going to take the gold they're going to securitize it monetize and trade all the s

to the banks and i don't think you can say that the interest of the banks of the one percent is the interest of germany and less years redefining germany and redefining europe as a kind of neo feudal oligarchy society run by the back so that's why angela merkel herself is losing electoral support in germany the whole political spectrum in europe is being thrown into disarray by the fact that the little birds left and right i mean when you have the whole issue basically one of finance finance cuts across the political spectrum from left to right it cuts across the spectrum of what is germany what is france what is europe and it really has a class war back in business in a very different way than north or sane in times past it's a class for banks against all the rest of society trying to grab all of the property and the political spectrum hasn't been able to deal with it except the socialist party and social democratic parties and socialist international what a president bought and radio as they bed in greece are on the far right of the political spectrum no and the old are right wing parties

stayed on the screen jeanne you are very experienced in the russian bank concerts acquired more than the interest and snorts played in a significant attention due diligence before we do describe the deals hoping that. show will score its. right period for its history and any who will do from here in the case of difficulties will go to our problem. now let's take a look at the markets traded near a two week high after the european union also rises a loan payment for greece light sweet is trading at ninety five dollars per barrel brant crude has gained as much as point four percent trading at one hundred and eleven dollars for the. u.s. markets are closed for public holiday independence day in europe equity markets closed higher on monday london still see ever just over half percent black held by gains for john edwards group and british land company banks fell though after standard and poor's rating services were on a roll over. and russian markets closed in the black as well buys it out of half a percent while reality has climbed point six percent stocks were high after loan paid for g

through by bankrupt banks the greater the failure of the bank in two thousand and eight and in europe today the data it's power to set the agenda it's a very strange. which defies the traditional left versus right arguments of free markets versus. collective action or central planning now we have a situation where the more you have failed to the more speak your inability to generate profits the more power you have over those who do all right well it's based on that scenario the profits that were being made by the so-called too big to fail banks for use to deregulate or to dismantle free market capitalism and they instituted a command and control financial autocracy in its place so it's a failure once again. and of command and control that we saw in one nine hundred ninety one as you describe it it's a repeat of ninety ninety one it's a it's a failure of the polar bear of the federal reserve bank and other central bankers but looking at greece for a second they of course through a seven year period of history experienced military dictatorship under the hunt ken i

dollars which is about one third of the bank's assets but this isn't the first time the bank is involved in the scandal the all the one involved the building that you see it right next to me which is at the mayor's office and that was because the former had all the bank of moscow unviable to do was accused of shady loans to construction companies are run by the former mayors wife now he has since fled the country and the warrant has been issued for his arrest the bank of moscow now getting fourteen billion dollars which is the biggest bailout in russian history that will be given over a ten year period at an interest rate of half a percent now this amount as three times bigger than the capitalization of the bank and it's smaller than the amount that was given to all of the banks here during the financial crisis process finance minister has since called for a criminal investigation into the bad loans to figure out who was responsible and what happens at alexander morales a from ages b.c. says the bailout shows the state is expanding not reducing its dominance in the banking sector in acco

excluding banks from the rolls undermines that voice. excluding banks also might create a fortune a pressure to enact blanket bans on former retail. i've been consistent in opposing formula retell bans. i recently voted against the pet food chain store ban for geary street. i said it was unnecessary. because the process provides ample protection to neighborhoods when it comes to a formula retail. when it comes to banks, economic that argument that they're not subject to the conditional use process. thank you for taking the time to consider my thoughts on this issue. sincerely, scott wiener. president olague: thank you. will you be here for the discussion part of this? ok. >> can we get a copy of that? president olague call and i would like to open it up for public comment. wrestled prichard it is first. >> good afternoon. russell prichard, representing the hayes valley merchant association. i am 21 your business owner of hayes valley. i own it several home interiors in the 500 block of haze. myself and several other merchants who have ess

i have been writing about the banking industry for the last two years. i hope all those who oppose banks will join us what i call for the boycott. that lady has to be the smoking bad week. thank you. [laughter] president olague: any additional public comment? public comment is closed. vice-president miguel: i guess i proceeded some of today's conversation several weeks ago when we were discussing a bank situation and it was my opinion that i voice at that time that banks were formula retail because of the retail sales and services situation. i have talked to supervisor winner and a number of other people on this. i have not changed my mind. i would like to refer to the city attorney. not being an attorney myself but having studied business law and been around for a bit, my understanding is one law or code is written, if there are specific items he caught types of businesses listed that are either prohibited or permitted, anything that is not so designated isn't covered as a general rule. if you start listening to a bunch, those are the ones concerned with

by bank basis so the public can evaluate the performance of each bank. there's a tremendous interest in the public seeing these problems properly resolved. i want to ask those three agencies, the fed, the fdic and the occ will you release the results of the foreclosure reviews on a bank by bank basis? will you release the mortgage servicers action plan that response to problems in consent orders and what about the engagement letters for the, quote, independent consultants hired by the banks themselves to perform the foreclosure reviews of the bank? >> we are as concerned about these issues as you are. we have issued cease and desist orders. we told the banks they have to engage independent consultants and making sure they are independent and provide supplementary diagnosis over and above the work we have done as well as action plans for the banks and we will be reviewing those action plans and the conformity of the banks to those plans. our current plan is to provide a report. we will share with you a public report that will explain the findings and what

it's an ability of the central bank so i mean it's a long long story. of it talked just didn't. want to talk with you but there are considerations different problem this is most of all the problem of the management previous management of the battery. and a lot of. some very specific operation provided in the interest of the top managers and the have the open side to the bad and close to the bad but it could be. information from that clause so there are a lot of problems the system is it i know it but this problem of the system that it's all trust is a problem of management such a low so you know working on it you know your way is the only proving that the sec of this is a problem of the system and now we'll have some demand from the president of the russian federation for us to make some proposals on what should be changed what should be done. before very briefly i believe if the central bank of russia as a regulator supervised have not their rights have to have it's much lesser than the rights of other waste in the walled i mean to against the onus against the managers of the ba

the abilities of the central bank so i mean it's a long long story. that we talked just in on one on one talk with you but the concentration different program this is most of all the problem of the management previous management of the baton. and a lot of. some very specific operation provided in the interest of the top managers and they have the open side to the bad and closer to the band but it could be. information from that class sizes a lot of problems the system it's not oh it's partly it's problem of the system but it's all trust is the problem of management such a law so you're working on it you know you are working on that is the only proving that the concept of this is a problem on the system and now we will have some demand from the president of the russian federation for us to make some proposals and most of the changes will be done. before very briefly i believe if the central bank of russia as a regulator supervisor has not their rights you have to have it's much lesser than the rights of other events in the war i mean to against the onus

and you could become president of the world bank? hs) >> rose: those kinds of things. >> it's really up to the shareholder whether they are going to abide with this. >> ros but it sounds like a good idea. you agree with changing the principle, do you not? >> well, it's not only that i need to agree or not i think for the sake of the bank and the i.m.f. to be effective and legitimate they have to be. you have to be acceptable and legitimate in front of all your member countries. and i think the governance is the most important element of this legislation. >> rose:ack to global issues. are we losing the battle in the gap between the wealthy and the poor? >> many of the middle income countries are growing so fast and they recover even from the crisis of 2008 that it don't guarantee that they can provide with a share of prosperity in an equal w and you talk about the common concern. are we losing a battle or not? i don't think so. there are quite a lot of programs but then tlls also a setback which is sometimes dictated or driven by exter

says the acquisition makes. for a bank. the buying at the bottom of the cycle of the business cycle which means that asset prices are low. in a position to buy it is cash rich the strategic benefit is that it gives a foothold into the european union banking regulation in the european union is such that if you branch in one of the countries you are able to open branches in other of the countries with less difficulty. to go say to england and so i want to open a branch and england but it would have more difficulty. let's take a look at the markets now u.s. stocks are in the blank that's the spire reports consumer sentiment plunged in july with many saying views on the current economy and expectations worsened. and in europe stocks ended the session slightly down as traders were cautious ahead of the release of those bank stress tests. and markets closed next after a difficult week volumes were the owners and many people were away on holiday and direction the move unclear now let's look at some individual movers on my sax the

versus the bigger banks. the small banks are given preference with regard to who gets examined and the ability to overturn rules -- no, and this is one of the things people may misunderstand. things that threaten the system, they could be a pattern like subprime loans, particularly subprime loans issued by nonbanks and this bill covers, regulates for the first time those nonbanks. let's go back over this. i do want to address the single member commission. the one issue they have found, it was originally proposed by ms. warren. we had hearings. we had conversations. and every single consumer group that we dealt with, the gentleman from wisconsin mentioned his supporters, wasn't a single consumer,, the consumer federation, et cetera, they persuaded me that a single member would be better than a commission. i acknowledge we had hearings and i listened to people who were for it. here's the debate. we have everybody who was against establishing this in the first place, who were against it in principle and believe t

s available in the grand central. bank president mubarak was sure that they would result in a beach resort. taj mahal hotel which is the cement hotel palace hotel closer than the radio to leave the. church in new delhi who took the maori babyhood to carry election ramona plaza and made. believe that was a reticent shift he was punished for taper cash promised. russia and the nato seek ways out of a stalemate for a missile defense system. common ground on the contentious issue can be reached within one year. libya hits pressure couple of the alliance runs out of missiles with germany you turning on abstaining from the conflict so it can deliver a bailout to its war. general just adjusted from the war crimes court forcing the judge to enter a not guilty plea on his behalf faces charges including genocide carried out in the balkans. accused accuse the hague of a one sided justice. and in business the former heads of bank of moscow are facing criminal charges after its huge bailout has discovered a third of the bank's assets w

they are three titans of banking, but that's where the similarity ends between wells fargo, bank of america and goldman sachs. wells fargo was the only one of the three to beat expectations. reporting a 29% jump in profits. the gain was due mainly to releasing $1 billion. that money had been previously set aside to cover bad loans. c.e.o. john stumpf is cautiously optimistic, saying "while the economic recovery continues to be slower than expected, there are signs that businesses are investing for growth." >> reporter: instead of profit at bank of america, there was a record $8.8 billion loss. nearly all of that amount was due to a settlement with investors holding soured mortgage-backed securities. despite that, chief executive brian moynihan noted solid performance in the bank's underlying businesses and said b. of a. will not need to raise capital. goldman sachs reported a 77% gain in profits from a year ago, but wall street was hoping for more. although investment banking was strong, fixed income took a big hit. c.e.o. lloyd blankfein summed up the banking business this way, "the operat

you said the operative words we were told yes you know who told us that the banks the banks who were panicking they called up and said save me save me save me come on let them i want to repeat banks have been going bankrupt for hundreds of years it's not the end of the world it may be a depression but you know if we let more people go bankrupt in one thousand in two thousand and eight we probably have it behind us by now other countries have it's been three years we would have had a horrible three years perhaps but you know when i in two thousand and eight out there in oklahoma in texas they were doing fine it was only on wall street that you had these staggering problems ok shares i'm going to give you the last word what's the future of the euro five years from now. five years from now i think that i have a two tier euro zone that has and the have nots ok dennis what do you think should be would you would you like to see it around in five years. i think it will disappear in five years i think cher's out his right i think there will be a northern fiscally responsible euro and i think

was putting pressure on financials the bank roll over a percent and then discounted over the. last go after the us was up more than two percent on the report say it was a lot of cars rose five thirty in the first half of the year. and that's all the business for the so i'll be back with more in about forty five minutes from now stay with headline news on. culture is that so much diminished because it is on the mark when it's real it starts its military withdrawal from iraq what does faith hold for the kurds and if the kurds strive towards an independent state what is. the limits.

she is one ofñr the managing directorof the world bank. he oversees operations in latin america and the caribbean, east asia and the pacific and the middle east and north africa. prior to joining the bank in 2010 she was a finance mister of indonesia. she was praised for her efforts to implement economic reform, tackle corruption and increase the tax base. indonesia is today one of the fastest-growing economies in the world. i ver pleased to have her here at this table to ta not only about the world bank but also about emerging nations an about indonesia. welcome. >> thank you, charlie. >> rose: are you going to go go back to indonesia and run for president? >> well, that is a very frequent question. >> rose: yes? >> i am now managing director of the bank which oversees more than 70 countries across a very die unanimously i can region. so i think i enjoy the job now. people may have an expectation and i feel honored they think i can contribute good things to indonesia. >> rose: assess for me where indonesia is today. >> well, indonesia, the

and of for saving the banking system not saving but preventing another collapse of the banking system all right well finally of course we're talking here you're actually sitting on a greek island how much do you want for it how much do you want for your children. yes well that sounds very impassioned but as we know it is more all sad no place than today's global economy morals don't trade out any exchange there for morals down exist so it's just a start everyone's got their price and today's globalized economy so out there is there that one twenty or a little less passionate maybe next week but let me answer this question in a discussion that way i was talking to investors from switzerland and germany who really want to get their hands on good gas and they said to me off are they going on the last few days that they will withdraw from the for from the competition to get these assets and it will be strong because they can sense the passion that you mentioned and they do not want to be involved in assets whose legitimacy the probity rights and the cost of the question by a