or not on regulation mark carney a significant positive for banks says analyst in a note to clients u.b.s. said the surprise decision to hire mark carney was a significant positive turn for both the economy and the banks u.b.s. said they did not expect mr cornered to be as tough on lenders as his predecessor predicting an end to what it called an increasingly challenging u.k. regulatory agenda well it's appropriate as they must tony because he's overseeing a circus freak show of central bankers having their way. in the derivatives market the shadow banking system creating all kinds of contortionists out there in the central banking land and half naked ladies and in this case of mark carney he's in a math i'm out for a day of banking because he wants both higher interest rates and looser monetary policy is a financial i'm afeard hey you know they should put him in a. little work perfectly and the city freak show one thread the needle straight there's mark carney and the bearded him aphrodite he wants higher rates and looser monetary policy welcome to the freak show marconi where we've got

most definitely at the forefront there are a lot of cases similar to yours there's a recent case of a u.b.s. trader who is responsible for one of the largest losses like two two and a quarter billion dollars and another case from societe generale why is it always the traders who get the blame never the top executives and well i mean i think that's a carefully worked ploy in my case it was certainly certainly right serves a purpose for the banks it buys them time because then when eventually the media or whoever result in those questions comes back to why didn't you have the controls in place they turned around well we have got the controls in place now we've done this and it's just a sign that the culture isn't getting better now whether it's getting worse or not is is for somebody else to say but you know in my opinion it's just stay in the sideline and people are breaking the rules and being encouraged to break the rules . and push the barrier of legality as much as they possibly can and that's the way it was in my day you know banks employ rooms of technology and legal professionals to p

from dodd frank derivatives regulation are exempt for context according to bloomberg big banks like u.b.s. and deutsche bank lobbied for this exemption and here is a sense of why foreign exchange contracts were the second largest source of derivatives trading revenue for u.s. bank holding companies in the second quarter the company's reported three point one billion dollars in revenue on trading of foreign exchange derivatives foreign exchange swaps and forwards are part of a four trillion dollar global daily market for foreign exchange but is that really all because actually it could be more than that our guest put together this chart showing outstanding over the counter derivatives take a look ok so making up the largest swath of that is interest rate swaps three hundred seventy nine point four trillion dollars there but does this exemption that timothy geithner gave to forex swaps essentially exempt interest rate swaps to now forex wops and forwards are a thirty one point four trillion dollars but did timothy geithner just essentially grant an exemption for more than four hundred trill

place right now because as you say there's more scrutiny there's even scrutiny in switzerland you have u.b.s. the rogue trader on trial you have that senior banker c.e.o. lost his job to over that scandal i mean really i think there's going to have to be a come to jesus the bankers are going to have to realize something's changed and hopefully the obama administration will reinforce that some of them are already talking about shutting certain businesses where the business is going to go who knows but you know i think they better start stop circling the drain and thinking we're just going to move it somewhere else and keep doing what we're doing i think that the number is up and they're going to have to fess up and hopefully it'll be reinforced by enforcement here in the united states i'd like to see a lot stronger enforcement rather rather than the passes that the banks have been getting cheap. morgan is actually really under an enormous amount of scrutiny right now there was a new report that there's one hundred forty billion dollars that they reported in their last quarterly report of mort

setters within a month for questioning over their role in the library scandal these are folks that u.b.s. r.b.s. and barclays so will we see bankers and costs for their war against a price mechanism will discuss and resulting the fiscal cliff. i outlined a responsible parent forward to avert the fiscal cliff without raising tax rates were serious about reducing with ups have to combine spending cuts with revenue. that sounds pretty opposed to good luck with that grand bargain guys so maybe we'll go off the cliff and what that really be so bad well you can decide mike maloney of gold silver is here to weigh in and cvo was out with a view of what a plunge would mean as far as a recession and unemployment goes and it's not about what the demographic that wakes up and says this is going to. holy demographic that realizes they have no savings this is according to michael owen he'll tell us all about it let's get to today's capital account. all right let's talk about the fiscal cliff because how can you avoid it the impact from going over it would be a recession in the u.s. economy next year a