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but wall street has devised this new trick to get uh... more deregulation
passed through our congress
sold five days ago just a brush you guys up on uh... an event that i didn't cover
a lot on the show but it was pretty big in the news
senator carl levin who's a demographic democrat of michigan
he delivered a critical report and held an explosive hearing detail ing with
cold the london whale trades
made by j p morgan chase satellite office in london
and as you may have read these trades turned sour and lead to six point two
billion dollars in losses
for the bank in a matter of weeks
more important j_p_ morgan misled regulators and
the nature of the trades
about the nature of the trades an alter their internal process ease to take on
more rest and then came the losses by improperly miss marking the value on its
balance sheet
pretending that the shortfall
was inconsequential
to avoid oversight and present a positive financial picture to their
investors size actually a clear example fraud we are just lined everybody around
you whether p regulators whether it be
by your own shareholders than other investors
it you can't just alliant out the the status of your balance sheet and that is
exactly what you can login dead now this was a big thing it was reported on the
financial newspapers it was covered by the mainstream media but not as detailed
as they should have covered it and they didn't explain and common sense turns
and really dive into it like they should have
so the whale trades
uh... which total one hundred fifty seven billion dollars at its peak
or incredibly risky and present a danger to the entire economy
but less than a week after the lovin report
congress will hold a meeting
on seven bills
designed too dot regulations that were passed in the dot frank financial reform
law
so we had briefly touched on this before there was another article that was
detailing other ways in which uh... congress is trying to squeeze by
repealing uh... certain provisions of dot frank now this isn't particularly
egregious because dot frank
was not some strong kind of financial reform
that you know
uh... really went the extra mile and made sure that we were going to budu
effective regulation and prevent
future recessions and depressions and prevent banks from over leveraging and
things of that nature
no doubt frank was really largely symbolic and they were very weak reforms
in there
the wall street took a look at and said no no we don't want any new regulations
even though we are largely responsible
for a crashing the world economy line aching risky investments
because we wanted short term gains at the expense of the long-term viability
of the system
uh... congress is holding a meeting on seven bills
designed to dot the regulations passed in dot frank financial reform
if the bills passed practically every improper and a legal action the j_p_
morgan chase took in the london will the bottle
would be either make the legal
we're allowed to foster and side of regulatory oversight
so think about that
the deregulation as much as they want to deregulate with these new seven bills
it would it make it so that
even what happened in the london will trade that disaster would technically be
legal
i mean that's all saying or legalize fraud
and it goes right back to the idea of too big to fail too big to jail
too big to do anything
elect their big financial to do to get away with whatever they want to get away
with
no strings attached no consequence is attached to it
i mean think about the fact that hsbc
but did business with known drug lords and drug cartels and with alok fired up
they'll undergo money for the institutions but no they didn't get
anything but a little slap on the wrist there was even equivalent
to a quarter of profit
but you wanna know what the new trick is now
that of wall street news is working with
turns out
that according to salon
these seven bills are likely to pass
because they're being brought up
in the house agriculture committee
so it's a trip to the financial institutions use to get out of the
public eye and subvert scrutiny
and the congressman or
on the committee or more than happy to oblige