the problem is the banks get in the way of the mechanics banks are blocking the process quantitative easing is forced the flesh and on savers you could say in that manner in other words in the united kingdom two hundred twenty billion pounds of savings of capital has been forced from savers to the city of london to be used for purposes of speculation so in cyprus they just took people's bank accounts and m.f. global they just took people's bank accounts here in the u.k. they've already stolen two hundred twenty billion pounds of people's wealth to give it to the city of wall street to speculate that's a forced deflation it's not reacting to and deflation this is the primary objection i have with this lunatic crackpots tweet is that she believes that the central bank is somehow reacting to deflation no no the central bank is causing d. flays shin in the capital accounts of those who are supplying this economy which is supposed to be free market capitalism with capital you can't have capitalism without capital so why is the central bank stealing the capital from people who have it that

the e.u. and u.s. banks basically they gave a lot of loans and didn't underwrite them very carefully to accurately against over or price to overvalue collateral that collateral reduced in value ok but the loan state and basically when you have assets that drop and debt remains the same is equity that's the way and that's the problem with these banks as well as the other banks ok now it's already let me jump in and ask you this in other words if i if i'm understanding you correctly the the irish banking system we were told was bailed out one hundred percent of the bondholders holders were made whole the state took on one hundred percent of all the liability the troika points to ireland as the poster child of everything that can go right with their prescriptions are you telling me that the irish banking system is about to get another huge bailout in collapse i have no idea if they're going to bail out but you know the collapse of the sec it's going to happen if it doesn't happen you know it looks like there ma

and i am of the banks i believe that the guys with the checking savings accounts are going to build the banks if supper. this is a template and i truly do believe that either cyprus is a template or you're going to have a lot of political ramifications when germany's as to foot a bill as well as the rest of the e.c. the e.u. value method cetera. this can't go on for too long i have a whole list of banks you know i listed anglo-irish i listed irish but i have a whole list of banks to review each and every one of them have play significant games or bust from a purely fundamental perspective and you know the real i see it and i could be wrong of course you know i have been wrong in one thousand nine hundred one so it is possible but the way i see it each and everyone of these are going to need a bailout if you look at them from a fundamental perspective ok so just to recap your call is that irish banks that have already crashed and needed a bailout are in a position now as we've said on this show now for several years and as i told people in ireland myself personally these banks are going

we know that the banks have renegotiated in the city of richmond so we know that banks can and do renegotiate these deals, when we work to try to make that happen. and there's no reason why we shouldn't try, even if we can save 1% that is significant money for san francisco taxpayers. >> supervisor avalos: thank you. >> thank you. >> supervisor avalos: next speaker please. >> my name is neilly yar borrow, a member of district 10. i am here to call on the board of supervisors and city staff to recuperate the money that the banks took from us through libor. that money blonks to san francisco and we need to get that money back. whether it's five cents or 5 million, we want our money back. the banks manipulated the interest rates to profit themselves at the expense of us. they rigged the system and thought they could get away with it, just like the banks sold homebuyers predatory mortgages that cost families their homes now we found they did the same to us and our government as well. all of us here in san francisco work hard every day, and the taxes that we pay from our hard-earned money need to

in the last few years the central banks have been the only bank in town dealing with the world economy. you know, i don't think the federal reserve -- they have been trying new strategies and they are not comfortable with that. they don't love doing that. it would live to see a world in which the fiscal authorities are pumping money into the economy and they can be the ones to apply the brakes. that is their natural stance. the central bankers don't go into that line of work because their activists and want to be flashy and do a lot of stuff. they tend to be sober and cautious people but they have been the ones in the last few years with the authority, with the power. >> host: the ability to get something done. >> guest: apparently running a committee of 21 people. the federal department committee has serious comments in making the best decision. >> host: you talk some in the book about japan and japan is actually changed quite a bit. they don't figure very much during the crisis but there has been a change in leadership there and what appears to be a pretty sharp change in policy. >>

european banks have lots of obligations and dollars, but the european central bank kanka $10. this is a big problem and could have caused the world financial system to come unglued. the federal reserve said let's do this. huckabee dollars. you give me a rose that you can win those dollars to your banks in europe on your own terms. but i had to 90 days, we swap back and no harm, no foul. there's an interest rate. so it is the way the federal reserve became under a blast result. not just the ecb. the swiss national bank -- that's partly a reflection of the service they shared. >> host: is not only that way. when the fed was lending money to the discount window in the thing that evolved into this facility turns out we now know european banks requiring direct from the factory u.s. offices. it strikes me as exactly the opposite when each of them is falling apart and this time they're pulling together. >> host: i'll be honest i did not fully understand at the time. i kind of got my head around this in december 2007, which seemed like an eternity ago. we now know because this informa

will lose their money if they put their money in the bad bank but then you have to reexamine the entire system and what a bank is ok is the common deposit it is the common grandmother who puts the money into a sitter for the possible demand a puzzler savings account she expected to be a credit analysis that credit analysts i'm sorry problem is interest rates are too low ok you put your money into a bank you're getting in the u.s. you getting point zero seven and so a point seven percent return maybe one percent return ok if there's any risk their rates have to be much higher there's no way in the world to avoid higher rates when people realize that there are significant risk in their banks even a small medical risk rates have to go up there just not enough food to go around. to give a risky investment to somebody to take a risky investment to do so my risky investment and return give them a return zero point seven percent is just not enough food to go around it may be a lot but not enough to support a global system of this size it is now all right reggie middleton we're out of time than

the world. during financial crisis a number of banks illegally. ed the libor a proven fact. swidz bank paid 1.5 million in fines and pled guilty to criminal fraud. barclay has paid 464 million fines. rbs of scottland paid 612 million. these are only fines paid to regulators. investors have not received restitution for their loss. a report from the charitable trust estimate the losses to the u. s. could be 6 million. the city of baltimore is in a class action lawsuit including brokerage funds caused by the manipulation. in january, san mateo and san diego counties filed a lawsuit as did freddie m.a.c., including j.p. chase and others. inspector general of the finance housing agency related that damages could be $3 million. last week, a federal court dismissed the antitrust portion of the baltimore lawsuit. this does not change the fact the banks have pleaded guilty to criminal misconduct. whether we lost 10,000, or 10 million, as a city we owe it to taxpayers to aggressively pursue this issue to hold the banks accountable. initial reports suggest financial managers were more c

from the consumer banks. we in the u.s. are taking a different approach. it is a concern that consumer deposits are used inappropriately. i would say it that would be the area that one would want to continue to watch and continue to make sure that banks are being prudent and well capitalized. >> before this conference started, several people met with some of the largest banking partners. one of the things that came out of that is that a number of bankers in the room said that they felt like they were underlined. moore capital could be put into projects. working people in this room think about underlend? >> i think the statement is true. what we are seeing is a massive deleveraging both by consumers and companies. that is not all bad. it is a reaction to issues that occurred in 2008. long-term, it is not sustainable. largely we were overlent. not because the banks are unwilling to lend. at this point we are willing to make any good -- there is good news on the horizon apparently, but there really isn't long dem

fred keep going what about the banks well the banks down at the banks would not have a problem if the other banks of that would be stupid banks and he kept stupid people of any institution well wall street the moral hazard problem but get on straight fannie and freddie of giving them good. well wall street so figure now for whatever is up there doing all that a handful of people and yeah while the one percent of their people are not angels it depends on the institutional framework you created we created a system designed to fail and it failed but it was not a capital ok george i want to go to you i want to give george the last words it was because he looks like capitalism is working just fine for one percent go ahead. yeah and i you know i don't know whether the deposit insurance is really a very much to do with it i mean look at what's going on now i mean the banks are essentially getting interest free loans from the government which they then lend back to the government and then pocket the interest that they make on that so and then this money then goes into the stock market so the

and also, want to know that the bank not double dipping. they have been triple dipping us. first is the interest from the loan, the swap. secondly as the foreclosers and also the bank has been charging us penalties for being late, and also the increasing our interest, to -- interest rate and also late fee. so the banks are double dipping us for too many years. it is time to put a stop to it and get back what is due back to us. thank you. >> supervisor avalos: thank you. next speaker please. i recognize former supervisor chris daly. >> thank you, supervisors. my name is chris daly, i'm the political director of sciu local and a vested san francisco employee retirement system. when i was sitting here, hearing from that there were losses due to the libor fraud in the retirement system i couldn't help to think back all those times that i sat over there, listening to chamber of commerce talking points about how public pensions are breaking the bank. today, we definitively heard it's the other way around, it's actually the banks that have broken the san francisco retirement system

the central bank president mario draghi could face a grilling about the state of european banks in the wake of the cyprus bailout. joining us for more, david einrich from the "wall street journal." thanks very much, indeed. if you had to put one question to mr. draghi today, what would you want to ask sthp. >> well, as a curious journalist, my question would be why? why was it handled this way? why was it not apparent at the time that this decision to haircut ensure depositors was going to cause panic in cyprus and beyond? why was that not fought out in a way that a day or two later wouldn't have to be reversed or shut down. >> do you think that it took the ecb by surprise at all? has it seemed to you that the central bank has been sidelined throughout this process? >> no, i don't think it was. draghi obviously has a seat at the table in all of this. i don't think it was draghi's fault that this is the way it was handled. you're the head of the central bank. you bear some responsibility. and if they had come in saying, no, we're not going to do this, we prefer to bear losses ourselves,

the bank of england, that swedish national bank, the swiss national bank. and that is partly a reflection of a sense of common purpose that the central banker shared. >> host: not only that way but that when the fed was lending money to banks, when they expanded their lending, the direct lending banks there was a discount window and the thing that evolved into this facility, it turns out we now know a lot of european banks are borrowing direct from the fed through the u.s. offices. so what strikes me is exactly as you say, the opposite of the twenties when each of them was pulling apart. this time they're much more pulling together. >> guest: even i as a reporter did not fully understand that at the time. in an ounce this in the new facility. a kind of got my head around this. this summer to cut summer of 2007, which seemed like an eternity ago. you know, we now know because of all this information coming out through the freedom of ever major requests and lawsuits. overwhelmingly that money into the being hundreds and hundreds of billions of dollars and was

the state of the bad banks. we haven't incurred the losses, we haven't recapitalized. >> definitely, banks still need time. the economic back drop is not exactly sunny, most of the eurozone. and banks need time to work through the bad loans that they have and generally banks will provision what they can afford to do and at any particular time. these things blow off as the attention of markets turn to specific countries. was anyone concerned about the cypriot banking system up until a couple of weeks ago or had even heard of any of the banks in cyprus or slovenia? these things are not an issue -- >> how big an issue is slovenia, do you think, now you that mention it? >> whoops. we're going to be told that it's unique. there was already a press conference the other day telling us that it was completely different from cyprus, which i don't think gives anybody any kind of comfort. its banks have a large amount of nonperforming loans, as we know, equivalent to about 19% of their gdp. slovenia itself is very small in t

like the world bank and the i.m.f. well they got the general populace and then when the large banks like j.p. morgan chase for example so off to rid of the odds and then make money on the back and betting against them during the two thousand and eight financial crisis well they go to court and they beat the system jamie diamond just got off yesterday in the first trial against dexia so it is rather just heartening that you're seeing again the banks propped up as saviors and when you bring them to court for the really got you legalities they have all the money in the world to fight it and the barely if ever get a slap on the wrist and of course the structural adjustment policies from the i.m.f. and world bank designed to keep the third world in perpetual poverty to prop up the first one to keep these people as rich as they ever have been and ever will be thank you so much jason and burma's it is true they are well and i thank you for coming on breaking down some of the rhetoric host that unbound radio dot com everyone c

the monetary base is the total cash in banking reserves that the central bank provides to the markets. in more detail, the bank will expand the buying of long-term japanese government bonds and increase the average remaining maturity of the bonds from the current period of less than three years to seven years. it also plans to more than double the purchase of exchange traded funds in two years. that's an increase of about $10.5 billion a year in terms of their amounts outstanding. the policy board members decided to change more important frameworks for asset purchasing. they will integrate two separate bond buying programs to give greater transparency. currently, one supplies necessary funds to the market and the other is for the purpose of monetary easing. in addition, they have decided to suspend a self-imposed rule of limiting sovereign debt purchases for the time being. the rule has been in place to cap the central bank's bond holdings to below the value of bank notes in circulation. after the meeting, kuroda said achieving the 2% inflation target in two years is not going to be e

with bailouts but i think the point of cyprus is that there are a lot of other banks around the world that have this black hole on their balance sheet and you know i've always been calling cyprus not a euro crisis it's a banking crisis and i think this banking crisis is going to spread to other countries and it's not only could a crisis it's an insolvency crisis exactly and banks look like they're solvent because they're liquid until overnight the liquidity dries up for whatever reasons in the case of cyprus the e.c.b. so they're not going to lend more money and the insolvency became quite clear so you know that's the nature of bank failures they look good until they actually fail which is an overnight event where you look at the whole euro zone up until recently there has been this idea that they could create these master funding. platforms to roll the debt forward extend and pretend they came up with the various acronyms for various funds and of course all these funds are a backstop by the e.c.b. which is essentially the old deutsche bank the bank of germany essentially but in a cyp

the banks can't continue their rent seeking ways in their currency ways their fractional banking ways and right are saying prepare yourself for this attack but my question is do you think that the fact because represents a threat to these guys you rub elbows with these guys james are they one of the what it tells what are they saying are they run are they getting a little concerned perhaps but what can you do about it you know it's been put out there and you say it was evil laugh ha ha ha ha not evil at all it's like i say it's you know but quinn has advantages and it is a reality you know maybe they're going to fight it as it gets bigger and as it becomes more popular i hope they don't because i'm in favor of you know what individuals choose what currencies they want to use them you know this is ron paul's point you know the freedom of choice in terms of currencies which goes back to you know. in history nationalization of money national money compete against free market money and see whatever people want to use and let them be free to choose you know after all that's how we humans p

it's a great city and we need to fund our services and not allow the banks to take money away from us ever again. thank you. >> supervisor avalos: thank you. >> i'm rebecca morrow, the public health nurse and i live in district 5. i think about this kind of in general terms, in family terms. when you have small children, and they have done something inappropriate, they have a time out. when you have a kid in high school, and they're not making the grade, they're acting up, they're breaking the rules, their report cards, their sat scores and there are consequences for what they do. if you're an adult and u a dui and you hit somebody you don't just pay the fine but you need to be accountable to the family of the person you killed. what i'm seeing with the vague response from the city attorney's office is well we're going to kind of look at things. we need to follow through. we need to go forward. i'm really sort of disappointed that san francisco wasn't leading the way on this and that we're waiting to see if we want to join someone else. we've seen too many service cuts. if u been to a

the central bank can only help banks, governments cannot be helped by the central bank. that's know the case in history, and it wasn't the case in america. so, these two gentlemen the president of france and his then minister of finance, who we saw later becoming the president, and what they did there was a law introduced in 1973 that for the first time since napoleon, because the central bank in france was operated by napoleon in person. the government could not discount at the central bank. in other words, could not get funding from the central bank, like happens here. when the government needs money, it goes to the feds and it's automatic. so, that little war means that -- let's take 1979, the percentage of debt of governmental debt in france, as proportionat to -- is 51%. today -- in 1979 it was 78% so we're going straight up, and we were to be thinking, of course, this has to do with government spendthrift, right? that was the motivation. well -- well, in fact, without the law it would be be 8.6%. from then on basically the government went to the private sector and b

which is essentially the old deutsche bank the old bank of germany essentially but in a cyprus situation like germany finally came out and said. you know no if we go we don't we're not going to they're drawing the line there so it seems like the euro project which was supposedly bringing harmony and they want to rescind peace prize for the all the harmony of the euro project suddenly there's acrimony and germany seem to be playing it very traditional role the air of squaring off against everybody else is germany as a sense please close the credit spigots and they're just going to let these companies waste away well you know it's a good point maybe this was set up to enable germany to have an excuse to withdraw from the euro and create a northern euro with itself maybe slovakia finland and one or two other countries that's a possibility but i think you know what they're trying to do or what they tried to do with quantitative easing and all this money printing is hope that by putting this money into the economy that the economy would get jumpstarted in the problems would disappear but i th

if you rip apart all the big banks in the united states while the chinese banks are growing rapidly, then the chinese will take over the global financial system. >> what do you think of that, david? >> he has a point that the u.s. banks are under pressure because there's not much revenue growth there whereas the chinese banks are enjoying strong growth. i think it will take a long time before the chinese can be stronger. there is so many going on behind the scenes which i think can partly account for the low valuation. you know, for example, i mentioned the wealth quality products. we also hear stories about how banks are disguising some of their lending. if you get around regulations or rules on concentration risks, for example, getting a borrower who has a loan to list a bond, then the bank will buy that bond. it can now report securities on its books rather than loans. you put that loan into a wealth management product and sell investors. >> david, the other thing, what happens when china starts reporting under their new capital ratios? i mean, when will you get a clearer picture?

money from the central banks at less than zero percent while the central banks to the commercial banks affiliates are charging people twenty percent thirty percent forty percent it's interest rate apartheid so get used to it let's look at what another hedge fund manager was on reddit dot com he's the hedge fund manager and provides economic analysis to bloomberg t.v. and huffington post his name is neil grossman and he did this read it and i've found it interesting about this american dream that i said like. the picasso is elbowed elbowed elbowed is smashed it's ruined it's theirs maybe somebody repaired it but it's not really the real thing so first of all the title of his piece was called about how your grandparents are stealing your money. by paying for benefits you won't be getting so here's a hedge from energy or saying it's your little granny who's stealing your money from social security and government deficits it's not the hedge fund managers it's not the stevie cohen's of the world it's not the lloyd blankfein to the world it's not the jamie diamonds of the world it's your lit

the two belt weather stocks. next week we will hear great trading and good investment banking but the spreads are down, mortgage banking is is wn >> lking at the recommendations, the bank stocks that you are recommending right now, you have city and wells far he go. let's start with city. investors had to be patient for a long type. how much longer do they have to wait if you buy the stock at $44 a share? i think you still have to be patient. it's the biggest restructuring story in the u.s. economy. we do think they will continue to post good progress on the restructuring, number one. and number two the mortgage banking is is not a big revenue item for citi. >> tell us the thinking with welli in s far go. long-term, you think it's a good buy? >> long-term, everyone is worried about the short-term mortgage banking numbers as you talk about. that was 19 of the 20 questions on the wells fargo call was about it. if you think in the bigger picture. rising home prices and we are seeing a strong market this spring. are a good thing for banks. credit quality is better ant the en of the darks higher home prices mean people will

that have been more profitable than the banks that paved badly? if not, you have a reversal. >> look at the canadian banks. just as an example. they did not have a unending leverage. they did not get the same complex products. they weathered the financial crisis just fine. i would say in the us, you look at banks like wells fargo that did not have a similar ratcheting up of risk and the fiduciary responsibility, look at the more boutique asset management places whose interests were not all over the place and did not have all sorts of conflicts. i think they survived a little better. in retrospect i think banks like goldman sachs and morgan stanley and frankly jpmorgan were lucky to have survived the crisis. i think there was an effect occurring -- the government would step in and save. i think the people who weathered the crisis just fine were the ones who retained this fiduciary duty, where they were not betting against their clients, were not using client information to make themselves money. at the time they were less profitable but five years l

i'd like to see the large banks, the universal banks in the united states at their full strength.ook at the valuation when we take a look at that full strength. we're not there yet. they're still lugging the costs from the '08, '09 debacle. but when we get there, probably at the end of '14, these universal banks will be giving back over 100% of their earnings in forms of higher dividends and shares per purchases. i know it's a topic of discussion today. we do not expect it to happen. we don't expect the banks to do it on their own. if it's legislatively driven out of the united states congress, that's the way it's going to have to happen and we don't expect that to happen. >> shandi, i'm sure you're going to pursue the story, though. >>> absolutely. but i'd have to agree with gerard. we always hear whispers about it, but nothing too serious. >> maybe just accidental that you get three notes in a few days, all on the same subject. just some -- about it, right? >> i guess what i mean, we don't tend to hear serious consideration from the legislators on this or from the regulators on

bank of america j.p. morgan chase in the royal bank of scotland but we've also talked about this sort of nexus of london as the center of all these frauds and of course this is i cup which is a london based firm but this was the desk in new jersey which was involved in this crime there are twenty guys on the i caught desk there controlling interest rate swap prices and they are known as treasure island because they were coining so much money according to the reports the commission is also looking at whether or not employees that i may have intentionally delayed publication of swap prices which in theory could give someone bankers cough cough a chance to trade ahead of the information so again max we have another case of front running we see this in high frequency trading we see this in the treasury market time after time there front running all of these big market moving numbers going to bust and i can. you know that's the thing i don't know what they say is treasure island is out there new jersey and they're committing frau