york city would be the new york federal reserve bank and they should seek it also they need objective the objective would be regime change so occupy tent city in front of the new york federal reserve bank in seoul the current administration leaves. you get somebody in there who's not let's say like a great remember tim geithner put was it eight billion dollars of new york fed cast american dollars onto a plane airlifted to iraq and it promptly disappear oh and by the way eric aying of where erik prince of blackwater just happens to be now living the dog the big life there in the middle east i wonder where that money went well you're more likely to get the same exact sort of paradigm that played out in tahrir square which is remember what mubarak said at first first he met the people in a televised address saying well i make a few little changes that was basically i'll have a commission to investigate whether or not there's been any fraud or corruption or torture and then he said there will be chaos if i step down this is a classic technique that the new york fed the u.s. fed the banks

social just like the bank of england new york federal reserve or u.s. federal reserve and other banks do. it simply stands by and forces government deficit to result in more and more depth to commercial banks so that instead of government deficits extending the economy with new investment in the employment and full market demand a government deficit shrinks the economy by leading to foreclosures and forfeiture of the main forfeiture of houses and mass impoverishment that is not greece thought it was siting on so what it should do is saying. this is not a europe we thought we were getting we're withdrawing we just the strain portugal and ireland was draw just as ireland voted against it was spent on a constitution and they should say this is nonsense this is war and we're pulling out and we're putting our economy up for grabs for those countries probably in the break up block that well except listen to their currency area because we're going to stand for this ok so imagine germany there and germany is portraying themselves as the victim and that greece a

federal reserve and other banks do it simply stands by. and forces government deficit to result in more and more debt to commercial banks so that instead of government deficit sixpenny the economy with new investment and employment and for market demand a government deficit shrinks the economy by leading to foreclosures and forfeiture of the public domain forfeiture of houses and mass impoverishment the debt is not what greece thought it was signing on to so what it should do is saying. this is not the europe we thought we were getting we're withdrawing we suggest that steyn portugal and ireland withdraw just as ireland voted against the list and constitution and they should say this is nonsense this is war and we're pulling out and we're putting our economy up for grabs for those countries probably in the break go block that well except listen to their currency area because we're not going to stand for this ok so imagine germany they're germany is portraying themselves as the victim that the greece are thankless characters that don't pay

reserve bank of new york or the federal reserve system. so when you think about the shadow banking system secularization is really key of it. and when you think of the financial crisis secularization is one of the key building blocks to the crisis, in particular, it's deteriorating rapidly in 2005/2006/2007 and the deterioration of itself of regulators to securitize and sell off risk and so when the securitizers of these assets -- when the incentives are not lined it's a moral hazard and it's linked to the deterioration of the writing standards so the dodd-frank act makes a big effort to address this issue in developing or -- in developing rules for risk retention. so there's -- there's a little chart in the handout that shows from the flow of funds, the total issuance of abs which is are mortgage label mortars and credit card trusts and other securitization vehicles as well as the gsemes and you can see this sort of like run-up of securitization in the five years prior to the crisis and then sharp contraction during the crisis. so we'll r

president of the federal reserve bank in new york. the new york fed supervisory responsibilities pincus cleave it the largest financial institutions that receive the largest tarp bailouts. who was that president that failed to oversee our largest banks? none other than our current treasury secretary. secretary geithner byrd wrote that the regulators have outlined major elements of reforms to bring oversight transparency and greater stability to the 600 $600 trillion derivatives market. main street businesses had nothing to do with the financial crisis. dog-francs -- dodd-frank will impose huge costs when they least can afford it. secretary geithner ur said the administration has started the process of winding down freddie mae and -- fannie mae and freddie mark. actually, their shares are increasing. with other government programs, including the federal government now controlling 97% of the market. housing finance reform has not even begun in the congress. secretary geithner claims that the success will depend on making sure that we ca

reserve bank in new york. diane? >> again, another day passes. thank you, jake tapper at the white house. >>> and now, we move on to a blustery but welcome visitor to texas. a big tropical storm named don. the lone star state is in the throes of an historic drought and cannot wait for don to arrive. the storm is moving through the gulf of mexico, as you can see, expected to reach southeast texas late tomorrow or saturday with plenty of rain, but not expected to become a hurricane. and abc's matt gutman is in victoria, texas, tonight. tells us about it, matt. reporter: hey, diane. well this tropical storm and the rain it will bring couldn't come at a better time for the folks here. these soybean plans would normally be chest high at this time of the year. instead, the cracks in the soil here are about waist deep. 30 inches down. now, this entire state, almost every inch of it, locked in this devastating drought. grasshoppers are swarming here, huge plumes of them. the rain helps checkckheir population. but the

morgan and the federal reserve bank in washington dispensing inside information the legally bloomberg is involved in illegal conspiracy that's not conspiracy theory that's conspiracy fact it's all tied in to bloomberg bloomberg being of course now running for president supposedly lining things up where is he getting that money oh i get it it's an inside information which he will of course try to legalize to cover his butt at the end of the article there's a quote it's going to be awfully tough to identify the source of the leak in this case because of course it's always awfully difficult to prove insider trading twenty eight nations were involved so a whole lot of people knew this ahead of time well the see if you see in other regulators they don't have the money to pay for. the subscription on bloomberg to show you who's trading on inside information they're bankrupt purposefully on purpose so that they can't possibly prosecute the insider traders but also as liam engraft goodman proved earlier this week is most things are no longer illegal anyway they've been unwound all the regulat

were summoned to the meeting at a federal reserve bank here in new york and cnbc's bertha coombs has details for us. >> investors who buy u.s. treasuries buy them through banks, and this morning the treasury asked those bankers and dealers who help to sell the treasuries to investors to come in and talk about the situation as the debt ceiling limit looms. it was a regularly scheduled meeting, because on wednesday is normally the day that the treasury would announce the next action of debt, but obviously, that comes after the deadline. from bankers we talked to and senior treasury officials, they didn't really outline any contingency plans about what would happen if the debt ceiling deadline is not extended. a number of bankers have told me they anticipate what would happen is that those debt auctions would likely be postponed. we saw it happen back in 1995 when the government was shutdown. it was postponed for several weeks in terms of the auction, because essentially, if the government doesn't have the authority to increase that, then the treasury can't issue more debt. the bankers

meet with treasury department officials later in the day on friday at the federal reserve bank in new york. if this is the white house. >> on to other news tonight. important new development major development in fact in the shooting death of man san francisco police were chasing. investigators have recovered the gun which killed seattle parole violent or kenneth harding junior in the bay view district two weeks ago. here's a good look at the gun. as vick lee explains a tip from the public helped this case. today at noon a group demonstrated outside city hall to protest kenneth harding death. many of those here still believe he did not shoot himself despite the ballistic test results. >> we have to do our own independent investigation because we don't trust all of the, all the false allegations i believe that some of the police if did putting up the gun. >>reporter: police say they found the gun. 380 semi-automatic pistol. police chief greg says a bay view resident told police where the gun was. >> as of saturday we received information that we had the gu gun. we actually worked throug

does the federal reserve bank of new york have a conflict of interest, how can they both be the regulator and a party to exact the settlement of a lawsuit? the $8.5 billion settlement is for $174 billion in mortgages. this amounts to a 5% rate. given that independent investigation suggested that two thirds of the loans had representation at 8.5 billion mistakes awfully low. can you explain that? >> bank of america is not regulated by the bank of new york but bank of richmond. the bank of new york led this lawsuit in order to recoup as much as possible for the taxpayer. that is the objective of that. >> that is all they could get? >> we went through all we could. >> $1 billion in mortgages? >> this was a collective suits with many participants and this is what this court said was willing to award. >> thank you very much, mr. chairman. >> let me compliment you on your testimony. and your answers to our questions. one thing that i do want to say is you always stressed and i agree with you and mr. carney was agreeing with you and there's agreement on both sides of the aisle that long-term str

president of the federal reserve bank of new york. the new york fed supervisor responsibilities incf laok cest financial institution that received the largest t. wr qte t bailout. who was the new york fed president who failed to oversee our laragast banks and presides over the t.a.r.p. bailout? none other than our current treasury secretary, geithner wrote that regulators outlined major elements of reform to bring oversight transparency and greater stability to the $600 trillion derivatives market. republicans offered a derivative substitute amendment that accomplished all these goals n ability to hedge their business risks. loain street business had nothig to do with the financial crisis. edevertheless do. thes-fralic will iricose huge costs at a time thy least afford it. the secretary failed to mention that. he also said the obama admial bstration has started a process of, quote, winding down fannie mae and fre. thesme t mac. can you belme tve it? fannie and freddie's market shares increasing. they count for 70% of mortgage-backed s

reserve bank in new york. jake tapper, abc news, the white house. >> the scary part of all this is you listen to the reporters, to the politicians, all the analysts, and no one knows how this is going to end. and we're, what, three days out. tuesday is the big deadline and no one knows how this thing is going to come to a head. >> it's going to be a tense meeting with those bank heads. i'd like to be a fly on the wall in that meeting. >> now some are encouraging the president, president obama, to use the 14th amendment, which means he could unilaterally raise the debt limit without having to wait on congress. that seems like a dangerous move too. >> he doesn't want to do that. he s ss his lawyers wouldn't support that. it doesn't seem likely. >> american politics. it's a messy season. >> it certainly is, certainly is. all right. >>> now to texas where a soldier suspected of plotting a deadly attack on troops at ft. hood is behind bars. naser abdo was a muslim with a conscientious objector status. >> he was und

president of the federal reserve bank in new york. the new york fed supervisory responsibilities pincus cleave it the largest financial institutions that receive the largest tarp bailouts. who was that president that failed to oversee our largest banks? none other than our current treasury secretary. secretary geithner byrd wrote that the regulators have outlined major elements of reforms to bring oversight transparency and greater stability to the 600 $600 trillion derivatives market. main street businesses had nothing to do with the financial crisis. dog-francs -- dodd-frank will impose huge costs when they least can afford it. secretary geithner ur said the administration has started the process of winding down freddie mae and -- fannie mae and freddie mark. actually, their shares are increasing. with other government programs, including the federal government now controlling 97% of the market. housing finance reform has not even begun in the congress. secretary geithner claims that the success will depend on making sure that we ca

president of the federal reserve bank in new york. the new york fed supervisory responsibilities pincus cleave it the largest financial institutions that receive the largest tarp bailouts. who was that president that failed to oversee our largest banks? none other than our current treasury secretary. secretary geithner byrd wrote that the regulators have outlined major elements of reforms to bring oversight transparency and greater stability to the 600 $600 trillion derivatives market. main street businesses had nothing to do with the financial crisis. dog-francs -- dodd-frank will impose huge costs when they least can afford it. secretary geithner ur said the administration has started the process of winding down freddie mae and -- fannie mae and freddie mark. actually, their shares are increasing. with other government programs, including the federal government now controlling 97% of the market. housing finance reform has not even begun in the congress. secretary geithner claims that the success will depend on making sure that we ca

reserve bank of new york, which is quite powerful, not as high-profile profile as the fed chairman in washington. he likes to stay behind the scenes. whoever is in this job must be somebody who cans sell the administration's economy policy to congress and to the public because this is a time where there is so much uncertainty, more than usual about the state of the economy that they need somebody who can really handle the internal and the external functions. >> another topic: what is the likelihood august 2nd will come and go and some type of debt ceiling agreement will be reached? >> there is certainly a chance of that. the administration and congress are right now hoping that they can come up with a package within the in connection two to three weeks in terms of an agreement so that by late july, they can go and vote on some kind of a deal to raise the federal debt ceiling. august 2nd is this deadline at which the u.s. is expected to run out of money. there is probably some, a little bit of wiggle room there. the key threshold will be how they react in late july when they see whatev

suzanne pratt, "nightly business report," new york. >> tom: job creation is also a concern for the new head of the international monetary fund. at her first news conference, christine lagarde said the fund will focus on balancing policies to create employment around the world with efforts to ensure economic stability. lagarde got the fund's top job after dominique strauss-kahn was arrested for sexual assault in new york. as darren gersh reports, lagarde will have to convince critics she's not playing favorites. >> reporter: when she looks out at the global economy, christine lagarde, the new managing director of the international monetary fund, might wish she had a third hand to help her out. >> on the one hand, the issues of sovereign debt, and that concerns all advanced economies ranging from japan to the united states, but clearly with a focus on the eurozone and in particular on the country of greece. on the other hand, when we look at the emerging markets, we have, in some corners, the risk of overheating and we have the risk of inflation as well. >> reporter: with the global econ

president of the federal reserve bank in new york. the new york fed supervisory responsibilities pincus cleave it the largest financial institutions that receive the largest tarp bailouts. who was that president that failed to oversee our largest banks? none other than our current treasury secretary. secretary geithner byrd wrote that the regulators have outlined major elements of reforms to bring oversight transparency and greater stability to the 600 $600 trillion derivatives market. main street businesses had nothing to do with the financial crisis. dog-francs -- dodd-frank will impose huge costs when they least can afford it. secretary geithner ur said the administration has started the process of winding down freddie mae and -- fannie mae and freddie mark. actually, their shares are increasing. with other government programs, including the federal government now controlling 97% of the market. housing finance reform has not even begun in the congress. secretary geithner claims that the success will depend on making sure that we ca

reserve bank of new york, which is quite powerful, not as high-profile profile as the fed chairman in washington. he likes to stay behind the scenes. whoever is in this job must be somebody who cans sell the administration's economy policy to congress and to the public because this is a time where there is so much uncertainty, more than usual about the state of the economy that they need somebody who can really handle the internal and the external functions. >> another topic: what is the likelihood august 2nd will come and go and some type of debt ceiling agreement will be reached? >> there is certainly a chance of that. the administration and congress are right now hoping that they can come upith a package within the in connection two to three weeks in terms of an agreement so that by late july, they can go and vote on some kind of a deal to raise the federal debt ceiling. august 2nd is this deadline at which the u.s. is expected to run out ofmoney. there is probably some, a little bit of wiggle room there. the key threshold will be how they react in late july when they see whatever

at the new york federal reserve building in manhattan. topping their agenda the debt ceiling and potential fallout if a deal is not reached in time. >>> wall street executives getting vocal on the debt debate in washington. a report from credit suisse says u.s. stocks could tumble 30% over the next six months to a year if the debt ceiling is not raised in time and the u.s. defaults. they did say the chances of that are very, very low but it would be serious. >>> several of wall street's top ceos sent a letter to president obama and congress yesterday urging swift action this week on the nation's debt ceiling talks. >>> later this morning the world's third most profitable company oil giant chevron is expected to report its second quarter earnings before the opening bell. just a few minutes ago big health care company merck plans to cut 12% to 13% of its work force over the next four years. the company announced its quarterly earnings were in line with wall street's expectation. >>> the big business story today, a major economic indicator,

the federal reserve bank of dallas has created more jobs since any other state since the end of the recession in 20 oat. 30% of all new american jobs. ed lavandera is in austining tonight. most of these states struggling with unemployment. what makes texas different? >> reporter: depends on who you talk to. even in democratic and republican circles here in the state they kind of credit the low cost doing business and also this state has just been able to whether the economic storm better than most. it wasn't hard hit by the real estate crisis and that sort of thing, unemployment here has remained below the national average even though it's still higher than most people would like to see it. take that combination into effect and i think that's why you see a lot of people on both side of the political aisle saying that's why texas has been able to whether this storm. >> ed, i want to play you something that will be on our program on sunday. we're doing a lot of talk about the american dream, one of them having a solid job and the other having a solid retirement. take listen to suzy orman. >> yo