goldman sachs faces a fifteen million dollars penalty if they break this deal with goldman sachs oakland though is there any not to invest in goldman sachs again. so what happened was the oakland city council voted unanimously to break the deal with goldman sachs the city would be required as i mentioned earlier to pay a fifteen million dollars penalty fee if they break a deal with goldman they made back in one thousand nine hundred eighty eight the deal locked in the interest rate at the time but the problem with that is the federal reserve set interest rates much lower after the financial crisis and this was done to help struggling cities like oakland tackle the debt but oakland has been still been forced by goldman sachs to pay the higher rate costing the city of four million dollars a year and oakland is sick of paying wall street at the expense of police teachers and other public services such as oakland stand a chance against the big bank to talk about this joining me now is dr lou's caliber organizer for the coalition to stop goldman sachs' welcome there lose so why i know that yo

a >> there should be no sympathy for goldman sachs. we should be doing everything to try to bring this matter forward. >> what is the matter? oakland city council votes to end its contract with goldman sachs that locked into a financial deal that cost the city millions. all of that and more coming up. this is "democracy now!," democracynow.org, the war and peace report. i'm amy goodman. a record-setting heat wave in the eastern u.s. is starting to ease after two weeks of scorching temperatures. the heat wave has been blamed for causing at least 74 deaths from the midwest to the east coast, including 18 people around chicago and 13 people in maryland. all-time highs hit major cities including philadelphia, washington, said louis, indianapolis, and louisville, with more than 4500 heat records broken overall. dry conditions and a lack of rain are also devastating corn crops across the plains, which faces its worst drought in 25 years. although eastern states will see a respite, western states are facing a potential heat wave that could br

bernstein and company now the only reason why they would do this according to hints is that goldman sachs and morgan stanley manage money market funds so they by law would be a blight too he however says that they wouldn't want to have to do this because they want cordial relationships with the other banks. well as if the law ever stop these guys from doing whatever it is they want to do but now they're hiding behind the skirt of the law suddenly when it suits them just like remember back during the crisis. they were not a bank they wanted to get on benefits of not being a bank and then when the crisis that they just thought oh no we are a bank and you know they they treat the law as a plastic a movable feast you know as whatever they write the laws themselves what we're talking about if they if they go to like what's going on they write new laws in front of obama just rubber stamps now max in fact a former goldman sachs partner who is now a finance professor at new york university's stern school of business says that plaintiffs would face difficulties such as proving how much money they

that could happen on wall street feeding frenzy seen if wall street sues itself over a libel or yes goldman sachs and morgan stanley are among financial firms that may bring lawsuits against their biggest rivals as regulators on three continents examined whether other banks manipulated the london interbank offered rate known as libel or said bradley hints an analyst with sanford c. bernstein and company now the only reason why they would do this according to hints is that goldman sachs and morgan stanley manage money market funds so they by law would be obliged to you he however says that they wouldn't want to have to do this because they want cordial relationships with the other banks. well as if the law ever stop these guys from doing whatever it is they want to do but now they're hiding behind the skirt of the law suddenly when it suits them just like remember back during the crisis. they were not a bank they wanted to get on benefits of not being a bank and then when the crisis that they just thought oh no we are a bank and you know they they treat the law as a plastic a movable feast y

reinvest this money back into the city than the throw it down the rabbit hole that is the pocket of goldman sachs and honoring a deal that was a fraudulent deal from its inception and why don't you kind of blame goldman sachs and the big banks for putting the city in this crisis this economic crisis to begin with why do you point your finger at them. well is because they came to the city with these with these financially very complicated financial deals these complicated financial instruments knowing that the people that they were presenting them to were not financial wizards are experts and this pattern has been borne out him in municipalities all around the united states and they got people to sign on to things that they really didn't know what they were doing when oakland got into its goldman sachs' relationship interestingly enough the man who is now our governor was our mayor and at the time that he was the mayor he got an oakland involved with this and coincidentally at the same time that his sister was a west coast executive for goldman sachs. but at the end of the day danielle that

he basically made a goldman-sized bet at a firm that was only a sliver of goldman's size. >> the firm's stock is getting crushed yet again this morning, and mf's credit rating was cut to junk by moody's overnight. >> how can something like this be allowed to happen? how can n e individu completely shape the destiny of this firm and ultimately its demise? >> these two stories on this special ededion ontline. >> frontline is made possible by contributions to your pbs station from viewers like you. thank you. and by the cporation for public broadsting. major funding is provided by the john d. and catherine t. macarthur foundation, committed to building a more just, verdant, and peaceful world. and by reva and david logan, committed to investigative journalism as the guardian of the public interest. additional funding is provided by the park foundation, dedicated to heightening public awareness of critical issues. and by tfrontline journalism fund, supporting investigative reporting and enterprprprprprpp >> martin smith: it's one of america's most dangerous jobs. >> people have no idea what

>> goldman's -- this is very much like goldman in their ipo, in 1999, goldman said we learned from the russian crisis not to emphasize trading. we're going to be more of an investment bank, more of an asset manager, and we're going to hold down our trading business. well, they did that for a couple of years after the ipo and then trading took off. now the regulators are forcing them to do the direction that they did at the time of the ipo. so the company will generate fine roes. the revenue growth rate will be slower going forward because trading isn't going to be as strong a business going forward. next 12 months are going to be tough for this stock, largely because it's going to take a while for libor in europe to work its way through, and unfortunately, goldman is trading as if it's an honorary european bank. the cross correlation of goldman with the european banks is 0.91. it's not fair, it's not right to goldman but unfortunately it's tough to make a short term bet on goldman. it's fine to make a long-term bet on goldman. >> you made the comment that their investment banking seems

and then goldman is a screaming buy. if, on the other hand, you think the world has fundamentally changed such that goldman's business model either needs to shrink or to reinvent itself to deliver those returns, then you're not so sure. >> but if that's the case, then you believe we're in a worldwide depression permanently -- >> no, she's just saying -- not a depression. >> m&a's going to come back. >> you know what? if fixed income drove these results, as it did to a large extent for many, many years and was by far the most profitable segment, not to mention sort of lumping in derivatives there, i mean, bethany, if we are in a different world, deleveraging goes on for years, right? what, we had a 25-year bond market rally that's ended, we've levered up as a society enormously. [ everyone talking at once ] it is not as profitable. >> the product -- >> can i hear from her, please? >> let's be clear. even if that is the world, i'm not counting goldman sachs out. the last paragraph of my story points out that this is a firm

sachs leader lloyd blankfein will tell charlie rose when asked about goldman sachs a siphoning of high frequency trading in a legal. offering of money from the exchange for said no we're making a market that's code for i'm a shameless market manipulating lawbreaking larsen a stick schmuck that's what that means making the market when it comes out of lloyd blankfein spyhole so one hundred percent of the time this robot beats you just like in the market one hundred percent of the time a high frequency trading algorithm is going to be any human being for big banks score perfect sixty one day run that's in two thousand and ten max despite the running an ease in world markets for giants of american finance managed to make money from trading every single day during the first three months of the year their remarkable sixty one day streak is one for the record books perfect trading quarters on wall street are about as rare as perfect games in major league baseball there have only ever been nineteen perfect days in baseball but bank of america citi group goldman sachs and j.p. morgan produced t

by going through goldman, greece ended up paying something like 16% a year. it's a bit like a subprime mortgage or something like that. it's a crazy borrowing rate for someone that's desperate to borrow money. >> smith: and how much did goldman make in the deal? >> i think you can safely say that goldman earned hundreds of millions on that deal. >> narrator: desiree fixler was working at j.p. morgan when the news hit. >> smith: when nick dunbar's story came out in 2003, what was the reaction inside the bank? >> the reaction wasn't... scandal-- "my goodness, i can't believe goldman sachs has pushed it this far and clearly has broken the spirit of the law." the reaction was, "you better go down to athens and find out if there's any more to do. how did you miss this?" so, most banks were trying to see if they could replicate it. >> i can tell you it's absolutely false. i was in charge. and i... you know, extremely knowledgeable in that domain. the position didn't make much sense. for greece, the transaction was disguised from greece's partners and a number of ot

morgan chase and a slew of other banks including goldman sachs. the city needed a new sewer system which was estimated to cost two hundred fifty million dollars but thanks to a crummy financing deal with the bank's toure's and the corruption of a handful of elected officials the cost of that sewer project swelled to three billion dollars like the banks have done to so many unsuspecting homeowners they sold the county alone for the sewer that came with one of those adjustable or exploding interest rates the county would pay a low interest rate that it could afford for a few years and then the rate would just blow up and surprise that's exactly what happened and when the rates went up the city couldn't afford to make the payments on that loan and they were wiped out by the millions of dollars in fees at the bank charged just to do the deal so after furlough in city workers cutting back on cops on the street and turning off city lights just to pay off the bank's chairs jefferson county eventually filed for bankruptcy one of the first american countie

sachs stepped in oakland has now paid twenty six million dollars more than it should have and goldman sachs is demanding more than fifteen million dollars more in fees and penalties rather than rolling over becoming a miss will slave to wall street oakland is fighting back last week the oakland city council voted unanimously to terminate the bad deal the city had with goldman sachs the resolution was simple yet very strongly worded saying if goldman sachs refuses to terminate the swap agreement without terminations fees or penalty within sixty days and they will be excluded from any future business with the city of oakland basically of goldman sachs doesn't do it the city says in the city will pull all of its business out of a bank which is a whole heck of a lot of money it's a threat that the bank has to listen to and a threat that other cities need to need to issue their own point is no city in america should be doing business with the bankers on wall street who proven time and time again they're only interested in looting instead cities across the nation should be investing their a

goldman sachs runs one of the largest commodities index in the world. and i've spent 20 years in places like africa, and i know what happens when wheat prices increase by 100%. children starve. and i knew i was going to get arrested because, you know, i was, i covered the famine in sudan and was in these huge u.n. tents and feeding stations trying to save. and you know, the people who die in famines were usually elderly and children. the place was, i mean, everyone had tuberculosis. i have scars in my lungs from tuberculosis, which i successfully fought off. and those are sort of the whispers of the dead. all those children and others who couldn't didn't have the ability to go in front of a place like goldman sachs and condemn them. >> but surely those people, as you were arrested, there were people working for goldman sachs looking down from the windows -- >> they were taking pictures -- >> taking pictures, laughing. surely you don't think they would wish that outcome in africa or anywhere else, right? >> well, it's moral fragmentation. i mean, they bl

goldman makes a good read across. but you never know what b of a will report. >> looking at some of your targets, looks like there's a great difference in upside for jpmorgan versus a wells fargo. but can you address goldman sachs itself? i know it's one of the names that joe jumped into today. i'm not in it presently. but you have $145 price target. so you expect some real upside for this name. >> we do. and the real good thing about goldman sachs is that they are one of the big ones that can still repurchase shares down here. that can really have a good multiple effect. we just heard about the fact that jpmorgan may be bam in the market in the fourth quarter. but goldman sachs can be in the market right now. that can really drive things in a positive way over the next six months. >> came out net exposure to spain about $3.5 billion. that's net. are you worried about the european bank problem as it pertains to jpm? >> absolutely. it's not about the direct exposures. it's about the $70 trillion of notional derivatives

to me that's goldman saks. >> pops and drops, midday market movers. that might not be on your radar, cummings. >> continued concerns over market. long-term maybe in the low 80s. >> barclays, doc, dropping 3%. >> a spanish investigation of the libor scandal, chairman former ceo both under the gun here and the chairman, sitting chairman under pressure because they say you're not exactly doing anything but shuffling deck chairs since you're leaving him in charge. that's why the stock is breaking through. >> facebook to borough borrow a from doc, getting ripped. >> catalyst are gone. the next catalyst will be the lockup expiring. >> negative catalyst. >> exactly, why the stock is down. people held hoping trade up, recommendations, other stuff, that's it. >> super value, simon, is popping by 1% or so. >> goldman up grated to neutral from a sell. remember this stock was down 50% a week or so ago based on revised expectations and dividends. stay away, too much on this one. >> pop for cheap rates. that is if you're a billionaire. facebook founder mark zuckerb

goldman sachs' stock prices came down. it's beat the adjusted numbers and the stock is going up today. good for them. when you look at the quarter crawl, investment banks was pretty slow other than underwriting. advi advisory, 26% over the year. when you look at the services, fixed income commodities, this is where goldman made the -- '06, '07, '08. 4% on equity, 5.4%. this is the new model, focusing on that, is a reflection of goldman's ability to shift when it needs to to deal with the new world. >> and there is a new world. >> lloyd did, these first names we use for bankers is a bad idea, but what i find did buy back 14.3 million shares. i don't want to hold the bottom, i know where the stocks should be. >> a billion and a half dollars. that was a big buyback. >> the spending relations -- give away toasters or credit cards. >> you're not going to find a goldman sachs branch on your corner. they already do, but in a more significant way with direct lending and the private bank. it's not the most profitable of areas and t

goldman has little experience in this space. i don't see wealthy families flocking to goldman just because they're offering loans. as one wealthy family told me this morning, i have all the cheap money i need but what i don't have is good advice. >> that 1% is representative of the kinds of deals. you can't make much money. >> goldman used to be the status brand for wealth management and this reminds you how they're competing with b of a and others for these prices. especially for the super rich. >>> coming up next, especially for super rich, what are the hedge funds telling us about the future of the markets. find out how you can keep up with the pros when we come back. ♪ [ male announcer ] this is our beach. ♪ this is our pool. ♪ our fireworks. ♪ and our slip and slide. you have your idea of summer fun, and we have ours. now during the summer event get an exceptionally engineered mercedes-benz for an exceptional price. but hurry, this offer ends july 31st. for an exceptional price. at merrill lynch, we understand the i

goldman sachs and as tommy gun rob rob rob rob rob rob rob rob rob rob this is robber barons on high frequency trading i mean if the robber barons were alive today they'd be high frequency trading and lloyd blankfein is a robber baron and africans are driving well for further. evidence of this assertion of mine that they're robbing the global central banks of the credit available whatever credit remains in the system you know willie sutton said he robbed banks with a tommy gun because you can't rob a bank on charm and personality so we're going to go to a charmless guy without personality bob diamond and piece admit they let diamond slip away ahead of inquiry vote so several members of the commons treasury select committee have admitted that the banking chief was able to get away with a vase of an implausible answers during a three hour appearance before them yesterday he appeared on able to provide straight answers he repeatedly strayed off topic and at times appeared unable to understand simple questions this is his posing as a bimbo oh i don't know nothing oh young man over there

my name is richard goldman, i'm a sunny side resident in my 20th year in sunny side. and i've been for most of that time ack tiff in the sunny side neighborhood association, including serving on the board as treasurer. as you know sunny side is one of the oldest neighborhood associations in san francisco. it was formed in 1974. it was primarily formed to save the sunny side conservatory from demolition of the city, as well as improvements and neighborhood cohesion. the map that i put up for you to see, that you have before you on the overhead are the boundaries of sunny side neighborhood association, as well as glenn park neighborhood association. based on both associations by lot. so i want to thank you for the important changes that you have made by including the 200 block boulevard west of baden. into district seven, back into sunny side where it belongs. the sunny side conservatory is a gem and pride of our neighborhood and also our namesake. so thank you for all the sunnyside residents that will now be able to vote in district seven, along with our neighbors on t

the issue about the olympics in london was just a tea cup. >> the goldman sachs that the u.s. will finish first with 37 gold medals, and i know how much faith we have in goldman sachs these days. >> i was just going to say that. >> there will be flack at home for the american athletes. some of our lawmakers are upset because some of the uniforms are made in china and they found on their iphoned andy pads. >> and he was unable to pronounce his last name. >> you're wrong. you can pronounce it any way. >> chris, i just said, after we play the sound byte, you can call him anything you want. >> it's cheney. >> i'm comfortable with what i did, how you did it, and i'll let others judge whether they liked it or not. >> do you have any regrets? >> not really. >> chris, what say you? >> it's the same as cheney. we all check it out and we'll know what we're talking about. [ chuckling ] >> eliot: now they've got me con veined. the fraudulent issue of voter fraud. that's coming up next. she's every 5-year-old who ever jumped in a pool and didn't want to get out. ♪ ♪ every coach, every

when they got out of prison, emma goldman, she was responsible for helping to found the aclu, mother earth, she was later deported back to her native russia. she later slipped back into canada, and when she died, she was buried in the city of chicago. kate richards o'hare, on the other hand, i think kate did a lot more with her life. when kate got out of prison here, she eventually got a pardon from president calvin coolidge. she wrote a book in 1923 called "in prison." it was a prison reform book, very well received and later became assistant director of corrections in the state of california and helped to build a model prison system in that state, and i believe she died in 1948, so you can find a lot of information on those two women, because they were two of the most renowned women activists of their day, they really were, so that alone to me makes this unit extremely, extremely historical. the building we're going into right now is housing unit three. it was originally called mcclung hall. this unit down here, this was administrative segregation, and also later it became death ro