sector now the decline in banking numbers has come entirely in the form of big exiting banks with less than one hundred million dollars in assets left on their books and the bulk of those departures occurred between one thousand nine hundred four and two thousand and eleven now f.d.i.c data shows that more than ten thousand banks left the industry during this period as the result of mergers and consolidations while about seventeen percent of the banks collapse all together now the number of federally insured institutions nationwide shrank to six thousand eight hundred ninety one in the third quarter now that's falling below the seven thousand number that it was for the first time since the federal regulation began keeping track in one nine hundred thirty four it's a long time now the number of physical bank branches in the u.s. is also shrinking from the end of two thousand and nine through june thirtieth of this year the total number of branches dropped three point two percent according to a. and room of a big coin there's a new crypto currency on the block and it's slimmer and more s

the bank should always. be sure. now during gardner's time at the treasury he went to great lengths to let people know that he was a life long civil servant. over during the financial crisis do you think that he ultimately serve the interests of the bank more than you know the interests of that would be served being a true civil servant. or sure of course that's the function of the federal reserve which serve the interest of the banks and in recent years that's been the function of the secretary of the treasury it's now also the function of the financial regulatory agencies they all serve the interests of the banks that's their function now since the beginning of the fed itself there's been a revolving door between wall street and the lender of last resort now even paul warburg advocated for the creation of the fed and he was appointed to to its first board by president wilson my question to how big of a problem is this revolving door and is it something that needs to be prevented. well they wouldn't be able to preven

the most dangerous kind of heist. some bank have a thief handing a note to a teller demanding money, implying they have a weapon or a bomb. a takeover robbery has criminals demanding that everyone get on the ground. the robbers usually have guns and sometimes fire them. the two men want to intimidate bank employees and patrons. everyone is ordered to the floor. so far, their heist is going as planned. >> they forced everyone to get down on the ground except the teller that they were holding the gun to and they demanded that they be taken to the back. >> they take a teller and manager to the vault and then have them empty money into a sack. >> the gentleman in the vest takes control of the rest of the employees and the workers, the one customer there. the other gentleman, he did go wage to the vault. he's ordering the manager there into the vault. you see here is where he actually pushes her to the ground. he checks with a customer. gets him back on the ground. you see him walk another employee and force her to the ground. you s

this was before the central bank and then there was the central bank. in any case then we had the depression and there were a lot of huge problems in banking. bank holiday, lots of runs on the banks. the movies, it's a wonderful life, mary poppins. everybody is standing in line at all that. and so the banks -- then we'd established deposit insurance. so the depositors kind of felt secure. over the years going back to the topic of development of the banking they stopped putting their own money or their owners money in but our view to your original question is that the banker never wanted to put enough of their own money in and the way we tell the story certainly with the guarantees is that you know somebody else can share in the bank. in other words the board becomes a little bit biased towards wrist take in their ford towards more boring and at first to say things because once that's in place the creditor bears this portion of it from the outside and the upside it's magnified. >> so all that said heavily put in reform since the 08 crisis and what would y

sector now the decline in banking numbers has come entirely in the form of big exiting banks with less than one hundred million dollars in assets left on their books and the bulk of those departures occurred between one thousand nine hundred four and two thousand and eleven now f.d.i.c data shows that more than ten thousand banks left the industry during this period as the result of mergers and consolidations while about seventeen percent of the banks collapse all together now the number of federally insured institutions nationwide shrank to six thousand eight hundred ninety one in the third quarter now that's falling below the seven thousand number that it was for the first time since the federal regulation began keeping track in one nine hundred thirty four it's a long time now the number of physical bank branches in the u.s. is also shrinking from the end of two thousand and nine through june thirtieth of this year the total number of branches dropped three point two percent according to a. and move of a big coin there's a new crypto currency on the block and it's slimmer and more s

the bank somehow are different. they are allowed to say things that you would wouldn't make any sense and other corporations. somehow it's inferred that that's okay. >> host: one of the arguments you make in your book is about equity and capital and first of all you define those for people. what are the arguments you make? >> well i mean one of the most insidious things that is going on is everybody uses this word capital and everyone talks about capital, capital, capital and it turns out most people don't know what it means. because of the way the words used around it and the way the discussion is framed you are taken into an entirely different debate which is not a debate that is relevant. so you would read oftentimes that the banks hold the capital, set aside capital and the analogy is often made are the implications made this like a rainy day fund like a pile of cash that sits idle. we are only talking about how the banks fund what they do and whether they do it with your money or with money that most companies u

we have given the money to the bank or. in the trade shows in new york, and the banker, there's not a suitcase that you have for safekeeping. you just want your money back at some point so we depositors linda the banks money. so from that point on bankers had this money. they thought, the are also people needing loans so let's also make loans. let's invest, let's play a little bit. the question is when they make loans or whatever it is they do with the money, some risk is taking. all kinds of risk which we do over, what could go wrong, what could go wrong? well, things can go wrong, and the question is, what happens then? whose problem is it then? and so the word bankruptcy actually has the word bank any. bankrupt means broken bench. so when the deposit -- impostors came and the money wasn't there, all they could do was break the bench or the banker. that shows you the control problem between the borrower and the lender. because the borrower takes you outside, doesn't come with the lender. the deposit as. and on the downside

a slightly higher rate of interest to not lend the money and just keep them banked in the bank if you will but at some point if if if the market conditions improve and business demand to borrow really increases well the banks will find it was profitable to start lending more and more and that money could easily come flooding into our economy i'm not saying that we face in any immediate situation an inflation as catastrophic as the ones that the german people suffered in the early one nine hundred twenty s. but if all of those trillions of dollars did start flooding into the market we could easily see an inflation of an historical significance like some americans of viewing the show will remember for. in the nineteen seventies when when when credit card. debt was at something like twenty five to thirty percent interest rate and inflation as measured by the consumer price index was averaging almost an annual rate of twenty percent a year that's not good like the germans but by american standards that would be highly disruptive and very corrosive of people savings now richard

speech and they're speaking of a change to the banking culture what about the book a role you know that was supposed to keep banks from gambling with customers deposits of will the final form be anything like what congress intended for it to be. and terms of the volcker rule did you see that you know it's designed again to keep banks from not gambling with customer deposits do you think that the final form will be anything like what congress intended it to be well we can hope in the interview that we said there's a d.c. quadrant kill place and so one of the one points of the d.c. quater kill is when the big banks want to change the rules they do so through one of the points being the wall making process chilton again serve and fight in this they want the protective regulations in place so that we don't see a tremendous market crash and then another bailout what's unusual about this change of leadership right now is the volcker rule still hasn't been written. it's playing out the clock and gary gensler is working very hard to make sure that the volcker rule gets written before he leaves

he believes the testimony of the bank tellers, who says the robbers were african-american. edwards is found guilty of theft, bank robbery, and conspiracy. police are not surprised edwards is convicted, despite her best efforts to mimic the robbery in a hollywood movie. >> i've been here in palos heights 23 years, and in terms of it being an oddity and unusual, this would probably rank at the top of all the cases i've ever handled. they went to some pretty good extremes to mimic the movie, all the attempts to conceal their identity, construct what drawers to open. what they did was give us more leads to find out who they were faster. >>> coming up, the brazen theft of $17 million from an armored car facility, one of the largest heists in history. >> it was probably true that everybody who works at lumos fargo at some point thinks about stealing from the place. ymptoms. new alka seltzer plus-d relieves more symptoms than any other behind the counter liquid gel. oh what a relief it is. than any other behind the counter liquid gel. it's where you email, yshop, even bank.e here.

he worked at the world bank. the board of n trustees at the brookings institution, the new america the general philosophy, and also serves on the state department's foreign affairs policy board. departmen affairs board. he will speak first followed by simon johnson, who is a professor of entrepreneurship for school of management and the author of many works. my favorite being 13 bankers. which is best book contributed to the financial crisis. if you don't read any other books for the next few months, they are tremendous. professor johnson is a senior fellow for international economics here in washington. he's a very well known blogger on the baseline scenario and "new york times" in october in 2007 and 2008. he served as chief economist of the international monetary fund. so i will invite mr. ahmad and professor johnson to provide opening remarks and then there will be an opportunity for colloquy and an opportunity for questions from the audience. without further adieu. >> i should speak from here. >> thanks. so i

this is about one hour. >> the bank of japan, the european central bank, all of them. rt, they all had to deal with the crisis and the recession and how struggling affected them with a sluggish recovery in many of them know each other because they studied and worked together and they are just in some ways a special club right now and there are differences. and they obviously have very different politics at home. and this includes these policies and the different economies in the banking systems as well the present special challenges. >> just to show how small this university is, all three of us and indicating this, and going back to a question, before the crisis, a consensus is global about how central banks would operate in particular about this design to be part of this with the globe. that consensus that i recognized as part of the price stability of the lives that we have mentioned this morning. and the key of this is part of the long-term. and also the ability of to help economies grow as long as they can and have the focus on price stability because this was the c

the games. deal taxpayers' money being squandered on banks. there's no they don't the are these demonstrations were laid down in armenia and to her and told him a favor or to a gas today on the o club today. of course lest they fall in the station in kiev on our website that cold night timeline of the events surrounding you pray that our task on that very day the course you'll straight at her expense the county's first real learning same couples to marry. it's just less than a week of his came into force. this not as easy as coppell has come a new era legislation criminalizing hundred six hundred seat while preparations overwhelmingly voted against same marriage and the national referendum on seized an antique and experimental why some countries refused to give the brain via a clean lines the most western countries already recognizing some form of the right of gay couples to get married and about children. but in other parts of the world there is the opposite trend in the second is that a week we've been married. and we've been married in austr

of england or bank of japan they're all really coordinating under the master central bank the bank of international settlements in switzerland and ron paul has been critical of this entire central bank centralized monetary authority that seems to favor one element society that is those who have access to money at zero percent interest rates for speculation while it penalizing workers and savers but the linchpin of this entire global central bank system is the u.s. dollar as a reserve currency as a c.f.o. of a major university and your thoughts on can the u.s. dollar continue this role as world reserve currency. and is it good or is it bad and can bitcoin challenge that role. i think that is a lot of. the world that you have outlined right now i believe that. the dollar will continue to say that all of its pain cut and lee but it will have to face to face a lot of challenge from b. clinton i kind of sure you ok so basically what i'm getting so far is that you are very happy that bitcoin is unable your university to get more students at a better price and expedite the whole educational

sector now the decline in banking numbers has come entirely in the form of big exiting banks with less than one hundred million dollars in assets left on their books and the bulk of those departures occurred between one thousand nine hundred four and two thousand and eleven now f.d.i.c data shows that more than ten thousand banks left the industry during this period as the result of mergers and consolidations while about seventeen percent of the banks collapse all together now the number of federally insured institutions nationwide shrank to six thousand eight hundred ninety one in the third quarter now that's falling below the seven thousand number that it was for the first time since the federal regulation began keeping track in one nine hundred thirty four it's a long time now the number of physical bank branches in the u.s. is also shrinking from the end of two thousand and nine through june thirtieth of this year the total number of branches dropped three point two percent according to a. and move of a big coin there's a new crypto currency on the block and it's slimmer and more s

the central banks. is is where upper agencies get involved. let me be clear. we were asked earlier to give grades. this is a place where the combined bank of england and u.k. government gets a very poor grade. with four banks running the entire financial system. it has been very problematic. the euro is the most extreme consolidation. even japan did nothing like that. it has very real costs. i fought against it totally ineffectively. i think the u.k. made a major mistake. >> if i were to add to that, i agree with what adam justin mentioned. if you have a weak bank, it is .nly natural to ask asis true that in europe well, we ended up with larger banks. in terms of grades, for the euro area i would have a hard time soosing between a.d. and in on how to governments -- a /;d/; "f"and an this goes back to the dysfunction of the euro area. out are really fighting it with each other. it is a very different situation. you may have one banking lobby and when governments in the euro area. they would have been very

of england it's a program called quantitative easing where the central bank loans the commercial banks to buy stock or bonds in this case in the central bank so they are doing the exact same thing that in iceland is a crime i think because iceland russia iran and china are all banking systems that are outside of the control of the federal reserve bank of america or the bank of england in the u.k. they are free to prosecute financial crimes we don't have that freedom in the u.k. because the bankers are protected by the bank of international settlements in switzerland the federal reserve in new york who cool loued on a global basis to line the pockets of the criminals in this case the bankers in the u.k. and america and of course the economies are suffering catastrophic only as a result of this poverty is on the rise and living standards in the u.k. are crashing worse than they ever crowd going back to victorian times. any chance other highflying financial skirmishes will now find themselves in the dark on some of the challenges that. well like i was alluding to there a moment ago the ba

all of which are represented in the world bank board. it is a hard problem, dealing with corruption by all these other countries. it is a hard time keeping the minds of the people in the world bank on the subject. it is a tough and unpleasant subject and makes it hard to get the money out there and get a project started. there was a lot of resistance to mr. wolfensohn when he made his point. when i came along 10 years later, it was quite evident. that's why i came along. there was a recognition that the bank itself had to do better in concentrating on this issue. the speech we heard from the president just now set out the leadership prerequisite. it is important that that penetrate through the bank. my impression is that beginning a few years ago, you began to make more progress right here in this institution in dealing with it. let me leave with you the challenge. i'm not sure it is the front page of the washington post, but it is the vest i can do at the moment. [applause] >> what happened five plus years ago that seems to be a turning

the cene?ean banking s put the european banking crisis back on the front pages?l likely be 50 billion euros across the eurozone. that will be paid for through so thed cuts, etc., amount that falls on national ares or european backstops likely to be pretty small in sovereign debt terms. the may european elections will be sort of an issue, likely to be a euro backlash that occurs. that can impact sentiment. that is not a big enough trigger. the big issue is what will the recovery look like and will there be more disinflation forces. the market is going to be disappointed and the recovery will be extremely bumpy. the ecb will have to capitulate. >> haeckel, we have to leave it there -- michael, we have to leave it there. turns 10. expanding into the next decade and what tech ventures he has his eye on. ♪ >> both wall street and regulators are claiming victory after the adoption of the strict nubile girl role. rule. strict new volker own were able to push the start date to july of 2015. this uses the automatic spending cuts and reduces the deficit. would end a three-

which are the main mainstream large banks but i think the thing that's really interesting is that it will hopefully lead into other areas when they talk about benchmarks you've got the go forward rate you've got. recently can but also i think from there once people become more aware of the issue of lack of transparency in the fixes and in these in these self certifying. markets then hopefully it will lead to the bigger issue of gold obligations the fractional reserve banking system the broader subjects discussed what are the what is the point of the fix what purpose does it serve. well it serves to provide a benchmark against which transactions can be can be set in these labels are not like the stock market of the closing price and then the next day they'll say that stock closed that there's such and such a price in the gold market they use this fixed price they get together and they fix the price well they just go to a system where they use the closing price why do they have to get together and obviously reg the price because like lab or re

the most hawkish prediction includes the federal bank. jpmorgan says the central bank will start laying the groundwork this week, but only in january. and cnbc's survey saw bring forward their taper timeline from april to february. chairman ben bernanke will give his final press conference as head of the central bank after the decision he hands over the helm to janet yellen on january the 31st. in the run up to today's meeting, fed president officials from across the country have given conflicting you videos on the taper timeline, raising doubts about the validity of forward guidance. >> the jobs report continues to show more jobs being created and a tick down in the unemployment rate will meet probably taper both up. >> our job, of course, is to do what is best for the real economy and have markets adjust around us. we've changed and impacted the markets because of our interventi interventions. and i understand full well their sensitivity, but they should also bear in mind this program cannot go on forever. >> people should delink these t

, the first national bank of the united states, we had a second national bank of the united states. the last one andrew jackson got rid of. i don't understand, first of all, why your guest is carrying the water for the central banks and the federal reserve which is unconstitutional -- >> host: well, let me, let me jump in. you said he's carrying the water. what was it that he said or reported on that got your attention? >> guest: he's not telling the people the truth. he seems to think that this economy is going to get better and clearly if anybody -- even if they don't have any kind of implicit knowledge of economics, they can look at this economy, and while the federal reserve keeps printing money, that powers the speculative economy. >> host: let me jump in, and before we get a response, got to tell you, greg, there's a little bit of trend on our tweets that are coming in ant the fed. mostly negative. here is just one more, isn't it time to stop the fred from driving the economy? let the private sector take the wheel. government gets out of the way? question ma

about making sure the german banks and the french banks and the dutch banks don't get losses. that is totally deflationary. so you're saying things that are demonstrably false. >> let me jump in -- >> i don't agree with you spend this is like the last comment on the mandate issue. >> not quite as violently. i do believe mandates matter. given my religion, my background, i like the dual mandate and they think the justification for it is that in reality central banks do have to trade off price stability against something. i think in the spirit of honesty you might as well make it explicit. i think it makes sense to say it's an equally weighted objective. two legs of the mandate i think is manageable. once you get into three i get nervous. >> we agree on mandates. we're going to move on. there have been books written, more books written about the banks response to the crisis so let's try to keep this condensed. how would each of you rate the central bank's response to the crisis either collectively or individually? in retrospect, if there's anything you would do differently tell m

most of that money went to the banking sector as it collapsed under excessive debt. my colleague, steven carroll, is in dublin. earlier i asked him about the health of the banking sector three years on. >> the banks really brought ireland into this mess in the first place after that decision by the government back in 2008 to guarantee all of the debts in irish banks. they pumped some 50 billion euros of taxpayers' money into the banks. the situation is at least stabilizing. bank of ireland, which is one of the banks that was rescued but not nationalized entirely is now returning back to profit. they've managed to sell some of the government's shares and pay the state back, actually making the state some money on it. the fully nationalized lenderses, a.i.b. and irish life and permanent that were merged, have a 9.8% stake owned by the -- 9.8 stake owned by the government. the lenders see no sign of getting out of the situation. although the financial situation has stabilized, the big problem is really mortgage debt. the property crash in ireland left so many mortgage ho

you can ask the central bank, should the central bank try to predict the governments are going to mishandle so badly a year later and try to undo some of the damage with monetary policy or doing things outside the mandate. i don't think this is feasible to do. even though outcomes are terrible, it's not clear to me they are terrible because ecb could have done things in 2010 or twofr 2011 and they did not. >> just 10 seconds. >> boys, boys -- gentlemen, gentlemen, why don't you wait one second. tell me one thing you would change and we'll go to adam. >> he's impatient. >> essentially i will agree with adam just looking at the inflation of the country, i would agree the overall monetary policy could have been somewhat more expansionary. i don't think we'll solve the existential problem for the last three years. in terms of ecb, this is something don kohn asked the panel and i was sbempting the way he answered for the area. should the ecb have confronted the governments in 2010 and explained to governments, look, we can't help you. we will not even help temporarily with interventions in the s

, outside the world bank and inside the world bank. it has been a great struggle inside the bank for a period of time, which is how i got involved in getting this into the culture of the bank, and the remarks that president kim made are very strong remarks about leadership of the world bank. the world bank cannot escape responsibility. you're an agency that involves in concept and practice everybody around the world, whether they are corrupt societies or not. we have our own variety in washington, d.c. we are not a boring country. it is terribly important. what strikes me is that you have a counterpart in europe among the donor countries, basically, oecd, that is but this is a very high priority from that standpoint, and here you are dealing with the emerging world. they are dealing with the emerged world, dealing with practices in emerged world that permit if not encourage their own companies to make the problem with the countries you are dealing with. i sat here thinking, you have it with leadership on the development side, they have

speech and they're speaking of a change to the banking culture what about the book a role you know that was supposed to keep banks from gambling with customers deposits. will the final form be anything like what congress intended for it to be. and terms of the volcker rule did you see that you know it's designed again to keep banks from not gambling with customer deposits do you think that the final form will be anything like what congress intended it to be well we can hope in the interview that we said there's a d.c. quadrant kill place and so one of the one points of the d.c. quater kill is when the big banks want to change the rules they do so through one of the points being the wall making process chilton again served and for in this they want the protective regulations in place so that we don't see a tremendous market crash and then another bailout what's unusual about this change of leadership right now is the volcker rule still hasn't been written. it's playing out the clock and gary gensler is working very hard to make sure that the volcker rule gets written before he leaves whe

probably better received outside the world bank than inside the world bank. i think over a period of time is how i got involved. the point i want to make is the world bank cannot escape responsibility. you are the leading donor agency that involves in concept and practice everybody around the world, whether they have corrupt societies or not. we have our own variety in washington dc. it is terribly important. you have a counterpart in europe, among donor countries, the oecd, that has put this on a high priority from that standpoint. here you are dealing with the emerging world. they are dealing with the emerged world. dealing with practices that permit if not encourage their own companies to make the problem in the countries you are dealing with. i sat here thinking, you have the scissors with two blades. you have the leadership on the development side. they have leadership on the well-developed countries that contribute to the problem. >> mr. volcker, i see her nodding. what is going through your mind? >> we have been mining those ever since. we keep using th

the german bank will instead fromve 525 million euros the italian bank to terminate the contract 17 yearsthe teenage mutant ninja turtles combat. it has -- combat. -- comeback. the demand for action figures rose about six fold. they still look a little bit frightening. analyzing champion -- league ties. here with more match analysis -- massive games. let's start with man city and barcelona. the team did not know about scoring the extra goal. how much does that matter now? projections.our we run those through our algorithms. 27.8% chance of manchester city regressing. 72.2% barcelona. barcelona -- we still favor barcelona. inaccurate through ball is defined as a ball that puts someone clean through. they do not have to score to make it. it is a much more interesting statistic. barcelona change the way they play. , butare not long balls they do try to play the ball a bit early. city..4 for manchester key.ink that could be the >> he is not fit at the moment. >> not the moment. in your personal view, 72%? does that reflect your view? >> those are purely analytical. i would give city more of a

which are the main mainstream large banks but i think the thing that's really interesting is that it will hopefully lead into other areas when they talk about benchmarks you've got the go forward rate you've got. recently canned but also i think from there once people become more aware of the issue of lack of transparency in the fixes and in these in these self certifying. markets then hopefully it will lead to the bigger issue of gold obligations the fractional reserve banking system the broader subjects discussed what are the what is the point of the fix what purpose does it serve. well it serves to provide a benchmark against which transactions can be can be set in these labels are not like a stock market of the closing price and then the next day they'll say the stock closed at such and such a price in the gold market they use this fixed price they get together and they fix the price well they just go to a system where they use the closing price why do they have to get together and obviously reg the price because like a lab or regular forex tr

all over the world that made the decision to say they wouldn't not less a bank failto say that is a european decision is simply wrong if you look at the challenges that we had across the time period where we how they put you treat deficit that nope that we could not found ourselves what i simply said is tough when it contributes to the point it doesn't have good choices open source and if you look at the decisions downloader countries have made i mean you can as i said from the start you simply cannot compare iceland and ireland but of course the real thing would be in a few years time for both economy stand and i hope what you will see happen is that the forces of growth that are beginning to develop in qana me that they are going to accelerate in the coming years and i believe that our membership and participation in the european union has been a very strong force to happen now in order to achieve that growth that you were alluding to some economists say that our needs to go at least by three to four percent. get out of this debt crisis. you'll need. bright well ed

money masters really goes after the central banks it really talks about the federal reserve bank and the fallacy of having really a federal open market committee decide interest rates and how that is quite damaging ultimately to the economy in the case of a bit coin or other. cryptocurrency that function is is now fill by the network and you're relying on the mathematics instead of the decisions of a few in the in the pullup bureau of the central bank so do you see this as a real counterpoint to a central bank system cannot replace a central bank that's my question well i think they're going to fight hard to replace it and you know this recent news from china. china had forbidden banks to trade in bitcoin and all that that was way overblown because they're allowing it they they specifically mentioned were allowing people to trade for it and practically speaking on the ground restaurants and beijing are now accepting bitcoins so yeah i think i don't i think central banks will go down fighting if the they do go down this is going to be a battle and i'm sure they're goi

when the world bank finances projects that destroy the. quality of life and even the livelihood and survival of local populations. without permission we decided to try our luck at the steelworks. threatening to call for the intervention of a minister we were allowed to visit this immense empty factory. cities in this factory was built to use and consume electricity from the anger. yet we knew very well that when they were building this factory the raw material they were going to use was scrap iron and rusty iron gathered in europe which is unacceptable given what we know the country's potential in terms of minerals is. in effect the situation is ridiculous underground in. the minerals of dug up to be exported eight thousand kilometers away and smelted. then used to make steel in the northern countries to make vehicles machines and when these vehicles are machines end up on the scrap heap they are compacted and shipped in a boat in the congo. which causes the river to rise. on the food this scrap metal is then melted in to create refined st

other countries have a business bank. thed states, canada, france, italy, germany has a fantastic business bank. very very important. >> we talk about the small and enterprises, the ability to pay taxes is critical. what additional support would hear?ke to do you really think he is going to give you anything in this statement? >> i would hope he would, but the export support area is a critical area. they want to export, they want markets. new they need practical advice. chambers of commerce around the upld are beginning to gear in overseas markets. was recently visiting british chambers in singapore. the u.k. spends 30 times more on overseas aid than it does on export. that can't be right. funded. to be better businesses need to have the help they need. we are talking about -- >> we are talking about both practical support and tax incentives. it is the balance come first? have i got it wrong? >> i think we can do both. these are relatively role -- inll sums of money comparison with overall public spending. the chancellor coul

more than half the residents here don't have a bank account. so on a friday afternoon, customers trickle into right check, a check cashing store. they are paying bills, buying money orders and cashing checks criticized seeming to exploit the poor by charging high fees. on this day, one of the tellers is not like the others. she's a professor of urban policy at the new school in manhattan and her job at this check cashing store is part of a research project to find why people choose to come here despite the fees, rather than going to a bank. what were your impressions? >> i thought the same thing in the press. i would say the literature that called check cashers abusive and predatory, and, you know, being businesses really taking advantage of the poor. so i believed that. >> reporter: but that belief is challenged when a man that runs a business visited lisa's class as a guest lecturer five years ago. >> lisa is like, i'll get my graduate students and laid this guy to waste. >> reporter: joe coleman is the president of the check cashing store. >>

the mark -- the comerica bank just down the block. >> the morning of, the first bank, i asked my dad, know, "are you the devil here to tempt me?" and his answer was what really scared me. he said, "yeah, probably. i'm asking you to rob a bank." >> reporter: so he knew full well the world he was bringing you into. >> yeah. the biggest point he made to me was the plan for all the details. >> reporter: the details would be what you've seen in movies. the fake mustaches, fake guns in the hopes of getting real cash, but what the kids were really banking on was beginner's luck. >> i was actually shaking so bad, that the employees grabbed the bag and started throwing money in for me. >> reporter: the family robberies, what could possibly go wrong? when we come back. actually save withebody family mobile? walmart's lowest priced unlimited plan? it's only $39.88 for unlimited talk, text and web. that's unbelievable savings. crunch those numbers. i could definitely come up with a figure. person aged 30-40...living in the northern hemisphere? if only had my calculator. think you need a calculato

the u.s. banks be brought down to the level on capital that the rest of the world operates at -- i have been saying for 20 years, that is the wrong way. the u.s. needs to stay where it is entering bring the rest of the world up. >> what do these regulations mean for the banks' ability to take risks? >> there are two measures that are relevant here. one is the risk-based capital measure were you measure the risk and the assets and assigned capital ratings to them. in addition, you need a leverage ratio. a minimum level of capital, 5% for the holding company and 6% for the banks. you need a minimum level of capital irrespective of risk ratings. that is what we have needed. -- u.s. has also had a rebel always have a leverage ratio. we are bringing the world toward us. we can't get distracted at this point. >> we have about 30 seconds left. how do these rules affect the competition between u.s. banks and international banks? does it affect the playing field at all? >> the big banks would tell you it doe

do polymer notes of the next step in the evolution of bank design and meet that objectives so rich will it turn to you now with a move to make plastic money more readily available increase the confidence people would have in their money supply i think would increase the confidence i would have that my money wouldn't get torn up if i tried to rip it or that it might survive the laundry or something like that but i don't think that it would make people more confident in the underlying reasons why they they would trust currency in the first place right i don't think that it has really anything to do with central banking logistics and pragmatic i actually couldn't agree with you more on this one i mean it's kind of like seriously about what we're going to say is oh my god oh it doesn't tear i feel like. you're on and. so i mean there's a difference between being strong like in terms of not being able to tear it and actually having a lot of value so i guess you kind of resent the question to ask it anyway you do not see plastic money is the future of i'm going to buy it will be