system as it goes so those friends of the french banks levered several times now if the french banks fail you know that france as a socialist nation will do the bailout thing much as much like the u.s. and the u.k. and greece and practically everybody else portugal the issue is how do you build something that's significantly larger than yourself it's as if. with one hundred thousand a bank decides to be allowed j.p. morgan itself you know can i do it and i can set to do it i can put headlines out to cause a significant spike in equity markets as momo traders moment the traders chase prices versus value but at the end of the day you have a disconnect and that's what i see for the french right the system in general ok so you bring up this interesting point how do you balance something with the debts are bigger than the entire country's g.d.p. now doesn't this expand a little bit to this developing scandal out of london involving libel or what i mean by this is that these banks have been allowed to grow their balance sheets to considerably bigger than the. g.d.p. of the countries

bank of england so it's gone into the inner sanctum of the world central banks over in the us of course there is this audit the fed movement that's been active for quite some time especially that the federal reserve bank of ben bernanke has been committing acts of interest rate manipulation and fraud but now mervyn king is a potato in this do you think this will have as some are speculating a kind of a ratcheting up of the post two thousand crisis leading to what some are calling the industry's tobacco moment where that you know it's back when history suddenly had to admit that they their products are carcinogenic in a change the industry are we headed toward a moment or bankers have to admit that their fundamental business plan is toxic they're a cancer and the industry must change i sincerely hope so i mean i read that our article in the economist and it was a made. thing to read that article especially after their january article which was called save the city which was really an abomination of an article i was absolutely appalled by that piece so so the one they've just done which m

the bank of england the banks seemingly. i don't know quite when that that that element of it started it probably didn't start till the height of the crisis in about september always but certainly you know it was well known in fact there's a guy called tim born to used to work for barclays capital who went on bloomberg television in may two thousand and eight and he you know he publicly stated that there was a deep concern about these numbers and whether banks might be making them up so you thought yeah the f.s.a. might have started to investigate at that point but they didn't they pushed back by the financial media in the financial times for example is that we have a committed crimes but they saved the system from collapse is that a legitimate response not in my view i mean i think you know you there's no excuse for committing crimes and even if they are sanctioned by people like paul tucker or if they were sanctioned by people people like paul tucker it doesn't excuse them in my heart in my view right now i think the word

big banks the answer. t's have meredith whitney join us, great to see you, thank you for joining us, is sandy weill right? should investment banking will split? >> i think it's steadily in the process of being split, but you don't need to break up the banks. it's clear where the profit sblt coming from and that the banks are at the initial stages of getting to where they need to go. i would say very early in the first inning of this phase. one of the first things they did for the banks was destroy pricing. so pricing on every product from mortgage to home equity loan to a credit card was eviscerated with the idea that they could make money on the other side. the fact is the aggregate has destroyed the pricing model for financial services. that has to be reestablished. and what investors and the market is saying is the regionals are worth more than the heavily complexed models because it will take years to downsize the institutions. a lot of the most profitable. >> that's where they're making for profiteprof

attraction of the bank was that it was highly trustworthy because of the religious affiliation of. owners but going back to william i mean the year zero which is what i was advocating at all this if there was one currency that was a highly politicized centralized construct it's the euro what i'm actually talking he's getting government completely out of banking completely out of currencies and moving to a completely voluntary private system so richard do you believe banks can regulate themselves yes i mean like you think they can do that we have collusion. but i'm talking about a situation where they wouldn't be bailed out by the government either implicitly or explicitly i mean we've seen them self regulation of past there was highly successful for example with the london stock market and there are plenty of other examples and if you don't behave properly under a self regulation environment you get booted out of the club but unfortunately we have moved to stay regulated admin's when everybody in the club is corrupt. well then you have the i

the banks c.e.o. in this case. was the new c.e.o. of bank brought in only two weeks before authorizing this transfer to lehman brothers and he called it an accidental transfer oh wow it sounds like j.p. morgan situation where that two billion dollars was accidentally taken out of the m.f. global accounts hoops yes so again you know in the headline to build the biggest magazine in germany read germany's dumbest bank k f w again the bimbo route to the bimbo disguise you know i got this until i got this idea of maybe get americans to save more by creating the k.f.c. bank so they think it's going talking fried chicken and they go in there to gorge themselves on fried chicken or mashed potatoes you charge them five or ten percent put into a savings bank and so you know as i said willie sutton said he never robbed a bank when a woman screamed her baby cried so at least he had some integrity he there was a limit to who he wouldn't kill he wouldn't mean he wouldn't hurt a woman he wouldn't. heard of little bab

next in the wake of intel banking a raid in the u.k. cross-talk asked whether a global heights just taking place. if you. still. want to. blow in welcome to cross talk time peter although library gate this most recent financial scandal gives the term bank robbery an entirely new meaning to me to be lation of whatever it is the largest economic scam in world history and the largest insider trading scandal ever it would appear the global banking system is synonymous with corruption. and you can. start. to cross-talk the most recent banking scandal i'm joined by william black in kansas city he's an associate professor of economics and law at the university of missouri kansas city and author of the best way to rob a bank is to own one and in london we go to richard wellings he is deputy editorial director at the institute of economic affairs all right gentlemen crosstalk rules in fact that means you can jump in anytime you want ok william and i think go to you first here it looks like the global banking system is one big cartel illegal oper

systems around the world talk to me about the french banks to be honest the french banks have an awful lot of competition as to who is going to fall you know it's a race with a lot of competitors but it's not as if the french banks are not the front runners france is one of the. the two strongest economies in western europe. or in the e.u. shall i say accompanied by germany but france has a lot of secrets for instance their banking system is a much larger than the sovereign state that the banks are domiciled in which is france itself if you take the assets delivered assets of the french banks it's larger than the g.d.p. of france by multiple and not simply one zero one times larger pacific and larger. combine that with the fact that the french banks and france itself is heavy leverage and it has its own funding issues with. its funding rates at historic highs you can see where there is significant stress potential calamity in the french banking system as it goes so goes france or the french banks levered several times now if the french banks fail you know fra

headlines from around the globe. bank of england governor presents the financial stability to british lawmakers in half an hour. will he go off script and answer questions about libor fixes. >> ben bern will off more clues about the economy against the backdrop of slowing u.s. job growth and weak u.s. manufacturing. >> alcatel lucent will miss guidelines. >> google's loss is yahoo!'s gain. in a surprise move the company raises its toppest rival, tapping marissa mayer to be its new ceo. >>> june cpi weaker than expected down .4% on the month and the annual rate running at 2.4, expected to be unchanged at 2.8. tilts lowest sin it's the lowest since 2009. you're seeing reaction on sterling. weaker against the dollar. the rpi down 2%. that's weaker than the forecast 3%. rpi is what we try pay attention to. the rpix which was the old favored measure which i miss down running at an annual rate of 2.8%. that was forecast at 3.1%. so all the key measures of inflation in the uk are lower. all services inflation 3.3%. the biggest d

right well ask what's going on here at the bank of england because up until now the banks have pointed out the so-called rogue trader and the bad apple but if bank of england authorizing this stuff as it looks like they are then we have time out systemic crime syndicate infecting the entire system now the same time the library crime story was on a following in the media in frasier there was a last reported story of the swaps misselling tell us about the crime which banks were involved ok well that one involves every u.k. bank you know the key players include royal bank of scotland h.s.b.c. barclays lloyds and clydesdale i don't know about santander whether it was involved but it probably was as well basically what they did was they they sold interest rate swaps to s.m.s. which were small companies many of which had no understanding of what it was they were buying in fact they were told it was it was something completely different they didn't understand that if the interest rates fell they would actually they could suffer huge costs and they would have huge break break laws or break cos

banks across the world. ce, we should expect that this whole libor related investigation will expand to many other banks across the world as almost by definition it's a rate of about 20-plus banks working together. and if anything, barclays has probably been an early mover in settling this whole issue. and we should expect impacts on other banks as well. >> so you've mentioned names across europe that again, given some of the fundamental concerns about european growth, about the financial positions of these banks and liquidity positions, that it just kind of highlights or adds to their vulnerability? >> that is true. to the extent you have a large bank which is involved in financial markets in a country where the sovereign is -- the sovereign's own credit is under threat, let us say, those banks are in a more difficult position than barclays is. >> and finally, did bob diamond in your opinion need to go and are you worried about the bank's long-term health or performance now that he and some of his top execut

guys at the banks who didn't know the words nor oh it was the main banks it was the main executives those are the guys who pay all saw of course the rogue like there isn't a greater rival but so it's interesting in that sense is that we. actually have those seen very rare but you know let's say that it was sanford will the other day the former citi group c. actually come out and talk about how there is so much corruption here about the fact that we need to break up the big banks that we need to separate investment banking from traditional banking and then i'd like to play you a little clip of how chris dodd respond to that take a look the idea of having this really breaking up these institutions is going to solve the problem i think that's frankly too simplistic an approach. i don't know if that really is that too simplistic it seems pretty simple to me go back to glass steagall and separate investment banking for judicial banking at least one step. no look these guys are all. said it best couple years ago when he said frankly they run the place here the banks do referring to capitol hill

tend to find that banks like barclays are unbelievably incompetent and i think the situation that we have to see and we're going to see is actually technology is going to be what changes this whole instance because already people are moving away from banks they're moving toward turning to not just all the stuff list alternatives like building societies and credit unions but we're starting to see a new technological function it's a thing called peer to peer lending it's essentially like e bay for finance and it's a long individuals and corporates to lend money to each other and just cutting the bank side of the system because unfortunately the banks themselves have overplayed their hand they've been proven to be incompetent and as you say there are going to be a lot more heads to roll because ultimately it looks as if all the banks were effectively complicit in what i think is going to end up being seen as somewhat of a government laden scam which has hurt every businessman and indeed every consumer not just in britain but everywhere around the world that has you looked out the lib

specht of a global collapse in the banking system the chancellor took the decision to balance the banks by dumping britain's gold forcing the price down and allowing the banks to buy back gold at a profit thus meeting their borrowing obligations but this is the beginning of a major period in manipulation by governments which now the latest chapter is the lie bore barclays bank of england and it relation but going back to this gold manipulation there was a major bank in the us short gold they had sold gold that they did not own price of gold started to tick up and to cover that short gordon brown sold half of britain's gold into the open market in such a way as to guarantee the worst possible price to get to the front running by every dealer and hedge fund in the world to guarantee that this bank this unnamed american bank could pocket enough profit to offset the loss that they would have incurred have the market simply been allowed to function ordinarily now this is coming on top of the one nine hundred eighty seven mass government intervention on wall street by reagan after the crash o

and as the banking scandal in the u.k. deepens with take a unique look at what's going on there with max kaiser. do . euro is a waste is you there is a. yeah this is the kaiser report where we don't the right there show just right and some of these guys just you know commit fraud on an hourly basis we just sit back and tell y'all about it print fund stays here ever max in fact is a global bank heist going on and you can see that in the tweets here's the first one from reuters business bank of england injects seventy eight billion dollars of monetary stimulus and here's a tweet from the a.p. a few moments later european central bank cuts mean interest rate by a quarter point to a record low of point seven five percent that's right low rates. low rate. we've been talking about this for years because speculators want low rates to fund their respective bets and squeeze out the entrepreneurs squeeze out the savers squeeze out wages keep rates really low the library scandal is about keeping rates low by manipulating rates quanti

on the other, the bank lobby. ver since the passage of the dodd-frank financial reform act in 2010, the two groups have been in a virtual deadlock over what kind of rules are acceptable. the industry has spent over $320 million lobbying lawmakers. >> narrator: to date, the rule-writing process has been slow. few rules have been finalized. >> i'd like to call this meeting of our advisory committee to order... >> narrator: at the federal deposit insurance corporation, regulators are meeting to discuss banks that are "too big to fail." >> i think this is the most important part of dodd-frank. >> narrator: they've pulled together a group of financial heavyweights, among them former citigroup ceo john reed, wall street super-lawyer rodgin cohen, former sec chairman william donaldson and former fed chief paul volcker. across the table are officials from the fdic's office of complex financial institutions. it is their job to plan for a big bank failure. >> ...mitigate systemic risk. >> so the scenario is sort of everythin

the u.k.'s entire banking industry. syria's president also denies clinging to the leadership and said he'd go if it brought peace findings raging nationwide despite more global efforts to end the. russian foreign minister warns the syrian opposition not to destroy the results of the geneva conference saying it's a prime chance to solve the sixteen months of conflict here in the country and what it tells on that just ahead. and iran says new western oil sanctions will cloud future negotiations nuclear negotiations this is the country conducts the task of long range missiles capable of reaching american bases in the region. as a result of this tension oil goes above one hundred five dollars per barrel in the russian market rallies to and choose the session on the very impressive gains i'll tell you more about that in twenty minutes. it's seven pm in moscow this is r.t. coming to you live from noosa now with our top story in just one of britain's bankers thought the worst public vilification was behind them the c.e.o. of on

two qualities that the bank will need plenty of. bbc news, hong kong. >> our business presenter is here. given what we just heard, you would of thought share prices have gone all the way down. that has not happened. >> absolutely. they have traded in hong kong. >> sorry. a mistake there. i will keep talking. this is traded in hong kong. it traded in london. share prices up about 0.25%. part of the reason, we're being told by the experts, is this has gone on for decades. this investigation by the u.s. senators has taken one year. they have reviewed nearly 1.5 million documents. at the end of the day, we have to remember that we are talking about a global giant. hsbc processes more than $1 trillion each and every day. that is what goes through the banking system. it has 110 million customers. it has 200,000 employees. it is a bank that does very well as making a lot of money and it pays its shareholders. shareholders know there will continue operating and making a lot of money. it is hugely embarrassing for the bank. he built the the a

the central bank this is what i want to emphasize here is that now we have clear evidence that the central banks are involved in market rigging this is a new dimension to the scandal on above and beyond what we've been reporting this is really unbelievably important because it cuts to the very heart of the entire global system and behind this scandal is eight hundred trillion in toxic debt that is going to blow in the dam breaks it all flow of these global economies and a deflationary tsunami which is going to completely obliterate these economies and of course the only refuge at that point is going to be gold and silver well in this rigging of the power markets barclays is also being investigated so of course this is part of the problem with not hanging the bankers without resting the bankers that these guys continue to get away with it because there is no penalty to their crimes so let's move on to this next headline from bloomberg how wall street scams counties into bankruptcy this could be another reason why people are not able to watch the news about libel or is because they're there

every morning each of the big london banks has to tell the british banking association the lowest interest rate at which it thinks another bank would lend it money. now how does each bank determine their own rate? it's a complicate product ses that is of vos a multitude of factors like investor confidence, the money supply, the human anus and yanking things out of it. (laughter) but mostly just those last two. then-- (cheers and applause) round of a plaus for the human anus. then, then that libor rate is used to set interest rates everywhere on earth. well, of course not everywhere. just places that use money. i believe emperor penguins on the roth ice shelf are not affected. now here's the wrinkle. the banks that determine libor also employ traders who make bets on what that rate will be. they're not supposed to talk to each other but you'll never guess what happened. >> traders at banks like barclays were essentially conspiring to fudge the data to boost their own trading profit. so one part of barclays would say to another part of barclays you can please submit data that makes us-- that

there has to be a point there's like that's why the u.s. banks didn't collapse because they got trillions of dollars and. it wasn't it wasn't tarp it was the fifth tarp is just peanuts there were seven hundred billion what the fed there was trillions in europe it's playing out that way the french banks have already received it late last year earlier this year lots of money. and they. i need to receive it if i need to in the german banks or something deutsche bank is. just leverage is probably the most leverage bank in europe you know what perhaps is a huge bank and of course the chairman's are very worried about deutsche bank and they will try to keep it afloat with free money right sixty one leverage at deutsche bank all right wolf that's all it's i we have for on the cause report thanks so much for coming on thank you very much all right that's going to do it for this edition of the kaiser report with me max kaiser and stacy herbert our thank my guests rector of the testosterone pit going to send me an email please do so at kaiser report at r t

so i think what we should probably do is go and split up in the banking and banking. what is the significance what kind of legs does this movement have and what could be the motivation for him saying this now we'll talk about it and the delegate blackrock vanguard firms that collectively manage more than seven trillion dollars are weighing taking legal action against banks being investigated for rigging lie boy this is according to bloomberg add these to the list of class action lawsuits we've started to see or could see and what our guest co-host jim rickards says may be the real live or manipulation crisis let's get to today's capital account. so boy did sandy weill raise more than eyebrows yesterday when the former chairman and c.e.o. as citi group said anough with these too big to fail banks take a listen i'm suggesting that they be broken up so that the taxpayer will never be the risk. they deposit it won't be at risk the leverage of the banks will be something reasonable and the investment banks can do trading and not subject to book or rule that they're not subj

the spanish banks by and large are weaker this morning across the board, not by much. bianco and bank of citadel up a bit. and bankia was down more earlier on. currencies first? which are we going with first? there we go. we'll go currencies. euro/dollar 1.2229. not far away from that two-year low we closed on friday, 1.2162, but weaker this morning. dollar/yen instead, below 79. aussie dollar made big gains on friday, 1%, post china gdp numbers, pulling back a bit to 1.0225. and for the moment, the pound is holding that line below 0.80. big week in terms of inflation data back in england, employment data and retail sales for the uk this week. that's how we stand now as far as european markets are concerned. let's go to the bond markets. german yields, worth keeping your eye on this, negative territory. we will get a two-year shat offering this week. the ten-year, 1.25%, getting back down to the 1.14% we saw june 1st. dutch two-years are weaker as well, and that won't help the euro negative yields in germany and holland as well because there has been this recycling of f

first of all, on the issue of structure of banking and the future of banking, of course we set up the inquiry which reports and implements the inquiry which will separate investment banking from retail banking. the parliamentary environment is wider what he said. look at the culture of banking and my honorable friend confirmed that this morning. the third point i will make -- all of these points need to be looked at -- still considering whether to locate criminal investigation. there are dangers which might not be able to get under way. as i say, if you want to do as fast as possible, to get action as fast as possible, the way we suggest is right. we have to vote in the house the lords last night where the house of lords voted a against a public inquiry. we made time available on thursday which hasn't happened before for an opposition motion to be debated and voted on and a government motion to be debated and voted on. frankly what matters more than a process is the substance. getting over this. i hope we can accept the result from thursday. >> mr. speaker, we were exactly the same po

the u.k.'s whole banking sector is under scrutiny as the barclays scandal implicates the elite. big questions remain out the investigation into the rape breaking up. with the bullet chief executive failing to provide many of. ballance and serial boils to spite the best efforts of peace makers it's a lack of food and soaring prices that's taking its toll on people who haven't even taken sides in the complex. and america's occupy activists get a hold on philadelphia where five days of protests saw dozens swept into custody. thank you for joining our team broadcasting to you live from the heart of moscow on charon terra well barclay's former boss has tried to distance himself from the great raking scandal that's shaken the bank that's after he was quizzed by and p.s. bob diamond was also grilled on the allegations the bank of england and political top brass were involved in over charging interest on loans artists are further explains. well the story just to run and run really full maci for executives buckley's bob diamond giving very little away when we saw him being quizzed by m.p

the u.k. is whole banking sector is under scrutiny as the barclays scandal implicates the elite. big questions remain out of us the geisha into the rate rigging up bucky's continues with the full chief executive failing to provide many of the. violence in syria boils despite the best efforts of peace makers it's a lack of food and soaring prices that's taking its toll on people who haven't even taken sides in the conflict. and europeans are hailing their parliament's decision to reject the controversial and tom piracy act which has been slammed for violating internet freedom. hello and thank you for joining our t.v. this thursday with me karen tyrone well barclay's former boss has tried to distance himself from the rate reagan scandal that's shaken the bank that's after he was quizzed by m.p.'s bob diamond was also grilled on the allegations the bank of england and political top brass were involved in over charging interest on loans are to sarah further explained. well this story just looks set to run and run really full mochy for executives bob diamond giving very little away wh

a vocal critic of the government and the banking crisis. nightly business report it brought to you by: : >> tom: consumers were holding back on spending and home prices were rising for the second month. home prices in 20 metropolitan areas rose from may according to the schiller home price index double what was expected. it was a mild day for wall street. investors still on standby waiting to hear what happens when the federal reserve ends its two day meeting tomorrow afternoon. >> the dow jones industrial average fell. and the s&p 500 also down 6. >> susie: the fed meeting. our guest tonight does not expect central bank policy makers to announce a big new plan to jump start the economy. the senior adviser at blackrock. >> bob, why don't you think the fed is going to announce a big stimulus program tomorrow? >> i think, susie that stimulus programs of the size qe 1, qe 2, and potentially qe 3 are for emergencies. and while we have a slow economy, it's hardly an emergency like existed before. so i think they're going to need more time to see

the other banks in the survey will be involved in this as well.hink the american media in general has been slow to realize the gravity of the scandal because there's all the financial corruption the news editors are generally reluctant to go there, especially something as complicated as libor. but what we are going to see is a lot of coverage like what you just heard from "wall street journal" were there will be a suggestion that this was done and sort of a patriotic manner in order to create an appearance of soundness during a time of crisis, done on behalf of governments. i'll suggest that is going to be the first line of defense for these banks. >> i want to ask about something else related to banks in your connection to the mafia. the recent revelations that hsbc, one of the biggest banks in europe in the did it was laundering tens of millions of dollars in drug money from the mexican drug cartels, forcing one of its chief officers to resign publicly in a hearing? >> that is a big scandal a probably has been overshadowed by the libor scandals