, some of like goldman, some not, they wanted to be like goldman. they make so much money, they have the history of people who their alumni getting important positions in washington. you mention bob rubin and hank paulsen, two others. even in the financial crisis that we've come through, the 2007 two 2008 crisis, goldman was able to see trouble coming and do something about it. they made a big bet against the mortgage market that paid off in terms of billions of dollars for goldman that every other firm did not see and just pretended didn't exist and basically all went down the tubes. but i think what you do get out of this story is how often goldman found itself in trouble, and how skilled it was of getting out of trouble. and so that was probably, you know, -- don't forget wall street has always been a dangerous place. firms have been going in and out of business their whole -- you know, for the history of wall street. most firms don't make it. and most firms before 1970 when they started going public and becoming public companies were small priva

goldman basically stayed pure. they made a few small mergers over the years and one large one that didn't work out but they basically have avoided even though during the crisis the fed was trying to get goldman to merge with wachovia or citigroup or whoever it was they resisted that and they stuck to their knitting and as a result of that, they are still very strong as is jpmorgan, and goldman is more in the, feared, admired, whichever one of those words you want to use in ways that jpmorgan chase has done and i know i worked at jpmorgan chase so i'm familiar with that firm. and goldman still has a certain cachet. >> host: your book certainly explains very well the very disciplined model that goldman follows in recruiting and hiring the best of the class and the harvard business school and other top schools, and i guess one of your points is this type, it is a meritocracy. >> guest: very much so. >> host: this is a society where we reward the meritocracies but also in the the ones that succeed like goldman and that

and goldman was the beneficiary of that, goldman sachs was. so it was eerie how long goldman has had an influence in washington and where this all began. it really began with henry goldman, but then, you know, after sidney weinberg basically every leader of the firm was either interested in politics or came to washington. and part of the reason is because goldman has now, especially, very much an up and out mentality. once you have made your pile of cash at goldman sachs as a partner, you know, they sort of force you out. which is very interesting. other firms, you know, they're not set up like that. when i worked at lazard, for instance, felix wanted to be treasury secretary, steve ratner was the car czar. but, you know, there was this mentality that, yes, public service was important, but, you know, until we get sort of tapped on the shoulder for the right job, we don't want to leave all the millions we'd have to give up being at lazard. but at goldman they force people out. so you get your time in the sun, you mange your -- you make your pi

and goldman was the men beneficy of that, goldman sachs was. so it was eerie how long goldman has had an influence in washington and where this all began. it really began with henry goldman. but then, you know, after sydney weinberg, basically, every leader of the firm was either interested in politics or came to washington. and part of the reason is because goldman has now, especially, pretty much an up and out mentality. once you have made your pile of cash at goldman sachs as a partner, you know, they sort of force you out. which is very interesting. other firms, you know, they're not set up like that. when i worked at lazar ferrer, for instance, people like steve ratner wanted to be treasury secretary. they never got there, steve ratner was the car czar, but, you know, there was this mentality that, yes, public service is important, but, you know, until we get sort of tapped on the shoulder for the right job, we don't want to leave all the millions that we'd have to give up. but at goldman they force people out. so you get your time in the

article for rolling stone the people versus goldman sachs of course you worked goldman sachs as a managing director and i also want to bring into this little discussion some comments made by a wall street bucket shop that goes by the name of stone street advisors. in the in the story about me that stoned street advisors is takes exception to one of the things they bring up right away is lloyd blankfein c.e.o. of goldman sachs of course is being accused by carl levin a lying before congress and lying to its clients your thoughts on carl levin's accusation the lloyd blankfein was lying to his clients and was he lying to congress with respect to his clients and those are some points that were brought up by levin and also in in math article there was an issue around certain deals one for example was hudson where goldman in order to get clients to buy those deals indicated that it would be taking a position on the side of those same clients within those same deals so the hudson deal for example was a one point two billion dollar deal goldman was going to take a sliver of a six million dollars p

article for rolling stone the people versus goldman sachs of course you worked goldman sachs as a managing director and i also want to bring into this little discussion some comments made by a wall street pocket shop that goes by the name of stone street advisors. in the in the story be that stoned street advisors is takes exception to one of the things they bring up right away is lloyd blankfein c.e.o. of goldman sachs of course is being accused by carl levin of lying before congress and lying to its clients your thoughts on the carl levin's accusation the lloyd blankfein was lying to his clients and was he lying to congress with respect to his clients and those are some points that were brought up by levin and also in in matts article there was an issue around certain deals one for example with hudson where goldman in order to get clients to buy those deals indicated that it would be taking a position on the side of those same clients within those same deals so hudson deal for example was a one point two billion dollar deal goldman was going to take a sliver of a six million dollars posi

article for rolling stone the people versus goldman sachs of course you work as goldman sachs as a managing director and i also want to bring into this little discussion some comments made by a wall street bucket shop that goes by the name of stone street advisors. in the in the story by matt taibbi that stoned street advisors is takes exception to one of things you bring up right away is lloyd blankfein c.e.o. of goldman sachs of course is being accused by carl levin a lying before congress and lying to its clients your thoughts on carl levin's accusation the lloyd blankfein was lying to his clients was he lying to congress both respect to his clients and those are some points that were brought up by levin and also in in math article there was an issue around certain deals for example with hudson where goldman in order to get clients to buy those deals indicated that it would be taking a position on the side of those same clients within those same deals so hudson deal for example was a one point two billion dollar deal goldman was going to take a sliver of a six million dollars position in

article for rolling stone the people versus goldman sachs of course you worked goldman sachs as a managing director and i also want to bring into this whole discussion some comments made by a wall street bucket shop that goes by the name of stone street advisors. in the in the story about me that stoned street advisors is takes exception to one of the things they bring up right away is lloyd blankfein c.e.o. of goldman sachs of course is being accused by carl levin of lying before congress and lying to its clients your thoughts on carl levin's accusation the lloyd blankfein was lying to his clients and was he lying to congress with respect to his clients and those are some points that were brought up by levin and also in in math article there was an issue around certain deals one for example was hudson where goldman in order to get clients to buy those deals indicated that it would be taking a position on the side of those same clients within those same deals so the hudson deal for example was a one point two billion dollar deal goldman was going to take a sliver of a six million dollars p

article for rolling stone the people versus goldman sachs of course you worked goldman sachs as a managing director and i also want to bring into this little discussion some comments made by a wall street bucket shop that goes by the name of stone street advisors. in the in the story by me that stoned street advisors is take exception to one of the things they bring up right away is lloyd blankfein c.e.o. of goldman sachs of course is being accused by carl levin of lying before congress and lying to its clients your thoughts on the carl levin's accusation the lloyd blankfein was lying to his clients and was he lying to congress with respect to his clients and those are some points that were brought up by levin and also in in math article there was an issue around certain deals one for example with hudson where goldman in order to get clients to buy those deals indicated that it would be taking a position on the side of those same clients within those same deals so the hudson deal for example was a one point two billion dollar deal goldman was going to take a sliver of a six million dollars

of course you worked goldman sachs as a managing director and i also want to bring into this little discussion some comments made by they wall street bucket shop that goes by the name of stone street advisors. in the in the story but not be that stoned street advisors is takes exception to one of the things they bring up right away is lloyd blankfein c.e.o. of goldman sachs of course is being accused by carl levin a lying before congress and lying to its clients your thoughts on carl levin's accusation to lloyd blankfein was lying to his clients and was he lying to congress with respect to his clients and those are some points that were brought up by levin and also in in math article there was an issue around certain deals for example with hudson where goldman in order to get clients to buy those deals indicated that it would be taking a position on the side of those same clients within those same deals so hudson deal for example was a one point two billion dollar deal goldman was going to take a sliver of a six million dollars position in that deal and because of that that was one

and here's what's coming up tonight on the big picture streets of gold maybe turning to hard concrete goldman sachs c.e.o. lloyd blankfein and its former executives you have it suggests they lied about cheating their clients out of millions of dollars so how are these banks toure's able to pull off this scheme meanwhile the koch brothers university funding programs are spreading right wingers using their own cash to change both staff and ideas and over five. universities the billionaire oligarchy succeed in reshaping our country's worldview and could there be a fifty first state i'll tell you why thousands of arizona liberals are pushing for secession from the radical republicans well in the north after the strike. yesterday raj rajaratnam a billionaire hedge fund manager was convicted of fraud and insider trading he faced twenty years in prison the jury found him guilty of making more than sixty million dollars based on insider information one of the only cases in the last twenty years where a big time banks are facing the music for high crimes on wall street alone raj's crime had little to

here's what's coming up tonight on the big picture streets of gold may be turning to hard concrete for goldman sachs c.e.o. lloyd blankfein and its former executives you have it suggests they lied about cheating their clients out of millions of dollars so how are these banks toure's able to pull off the scheme meanwhile the koch brothers university funding programs are spreading right wingers using their own cash to change clothes staff and ideas over five. universities billionaire oligarchy succeeding reshaping our country's worldview and could there be a fifty first state i'll tell you why thousands of arizona liberals are pushing for a session from the radical republicans are on the north of the state. yesterday raj rajaratnam a billionaire hedge fund manager was convicted of fraud and insider trading he faced twenty years in prison the jury found him guilty of making more than sixty million dollars based on insider information one of the only cases in the last twenty years where a big time bank was facing the music for high crimes on wall street will rogers crime had little to do with the

the fact that they were buying assets out of goldman's own book when goldman was buying them off the street. they didn't make disclosures that they were legally obligated to make. >> i think matt wants to see somebody from goldman arrested or charged. what do you think has to happen? whether or not you think goldman broke any laws, any of us who followed this got the impression that they were perhaps not dealing in the best interests of some of their clients. >> i think they probably aren't, just like most vendors aren't always -- look to their own interests before the interests of their clients. but here's the thing. there is a real desire to have a sense of closure on this, a desire to track down a villain, figure out who did this to us. and that underweights the power of human stupidity and poor system design. it can produce terrible results -- >> you're not ashamed to do what you do. i can't believe you're apologizing for these people who were ripping off -- >> a hedge fund is not an ordinary -- >> they ripped us off. how do you answer that? >> how do i answer that? i think that,

own book when they were told that goldman didn didn't. >> i think he wants to see something from goldman arrested or charged with something. clearly, whether you think perhaps they were not dealing in the best interests of some of their clients. >> i think they probably aren't, just like most vendors don't always look to their own interest before the interest of their own clients. here's the thing. i think there is sort of a real desire to have a sense of closure on this, a desire to trap down a villain, figure out who did this to us, and i think that really outweighs the power of stupidity. stupidity and poor design. >> how are you not ashamed of these companies that rip off ordinary people? >> a hedge fund is not ordinary people. >> but morgan stanley then took in turn a billion dollar tax ripoff from the taxpayer. therefore, they ripped us off. >> they do deals with big banks. there are questions how we should do those bailouts, but it's not goldman sachs' responsibility to make sure that morgan stanley makes money. >> i don't know how that makes sense in any planet in any universe. t

of goldman sachs they believe he committed perjury when he first appeared talking about the role of goldman sachs and selling securities ahead of their customers and profiting from double dealing to their customers engaging in the kinds of fragile behavior that you're describing right here they want him to dig down a little deeper into his memory banks to see if he can dredge up some of the most of the more the facts the case but could lloyd blankfein in fact could you call lloyd blankfein as a witness as part of your case it sounds like he's an expert witness and fraudulent double dealing and maybe he make an excellent witness but it was exactly the same good bad game that did play in the in the usa some years ago very getting the same gate and same game here you know now they were nor i would do the same get me in the united states soon a two thousand and eight and now they're doing exactly the same here so. if they will be called here in greece but not only hear me about that my doctors were goldman sachs or other investment banks you were on this game and this is a decision of the proce

of goldman sachs they believe he committed perjury when he first appeared talking about the role of goldman sachs and selling securities ahead of their customers and profiting from double dealing to their customers and gazing in the kinds of fragile behavior that you're describing right here they want him to dig down a little deeper into his memory banks to see if he can dredge up some of that some of the more the facts the case but could lloyd blankfein in fact did you call lloyd blankfein as a witness as part of your case it sounds like he's an expert witness and fraudulent double dealing and maybe make an actual witness but it was exactly the same good god game that explaining to us some years ago they're repeating the same gate and they're saying game here you know now we have a federal law and you nor i will go to the same gate going to united states you know two thousand pay and now they're doing exactly the same here so. if they will be called here in greece but not only hume you got out them out of this or goldman sachs or other investment banks you form this game this is a decision

of goldman sachs they believe he committed perjury when he first appeared talking about the role of goldman sachs and selling securities the head of their customers and profiting from double dealing to their customers engaging in the kinds of fragile behavior that you're describing right here they want him to dig down a little deeper into his memory banks to see if he can dredge up some of that with some of the more the facts the case but good lloyd blankfein in fact could you call i blankfein as a witness as part of your case it sounds like he's an expert witness and fraudulent double dealing and maybe make an excellent witness but it was exactly the same the game that the cleaning do you say some years ago they're getting the same gate and same game here you know now they have the formula north. going to united states you know two thousand and eight and now they're doing exactly the same here so. if black fan will be called here in greece but not me but out that model just for goldman sachs or other investment banks you want these game this is a decision of the persuaders not our decision

of goldman sachs they believe he committed perjury when he first appeared talking about the role of goldman sachs and selling securities ahead of their customers and profiting from double dealing to their customers engaging in the kinds of fragile behavior that you're describing right here they want him to dig down a little deeper into his memory banks to see if he can dredge up some of that some of the more the facts the case but could lloyd blankfein in fact could you call i blankfein as a witness as part of your case it sounds like he's an expert witness and fraudulent double dealing and maybe he may can actually win this. it was exactly the same in the double game that they play in the in the usa some years ago barry pitting the same gate and this same game here you know now because the formula you nor i would believe you do the same gave me in the united states you know it's a thousand pay and now they're doing exactly the same here so. if the team will be close here in greece but not only team you get out that model just for goldman sachs or other investment banks you've owned this ga

of goldman sachs they believe he committed perjury when he first appeared talking about the role of goldman sachs and selling securities ahead of their customers and profiting from double dealing to their customers engaging in the kinds of fragile behavior that you're describing right here they want him to dig down a little deeper into his memory banks to see if he can dredge up some of that some of the more the facts of the case but could lloyd blankfein in fact could you call i'd like to learn as a witness as part of your case it sounds like he's an expert witness and fraudulent double dealing and maybe make an excellent witness but it was exactly the same good that the game that the plane in the usa some years ago very pitting the same gate same game here you know now we have a formula you nor i would do the same game going to united states you know it's one thousand paid and now they're doing exactly the same here so. if fain will be called here in greece but not only she moved out but models are still there goldman sachs or other investment banks you've owned this game and this is a de

the world's largest insurance group because goldman sachs is former bank was up to their neck in. the news with the. various securitization assets and the tarp fund seven hundred billion dollars of taxpayer money was given to henry paulson carte blanche after the lehman bankruptcy so they have more or less destroyed the domestic u.s. economy the real estate debacle rolls on rolls on rolls on the unemployment grows in the u.s. there is no recovery there's not even a green shoots of recovery going on europe outside of germany in a few bright spots is is floundering in the after effects of this. financial bubble that goldman and company helped create were in there are loath or and the economic research is the one from germany today i think you're in for an r.t.s. appreciate it. colin threats are about to get a joint response to terrorism and drug trafficking of being tackled by president very different his pakistani counterpart to see feliz adare was in moscow on a four day visit the two men met in the kremlin acknowledging that both countries are suffering from international islamis

pair of us citi group commerce bank credit suisse first boston deutsche bank goldman sachs h.s.b.c. morgan stanley world bank of scotland u.b.s. wells fargo credit agricole and society in general you know maybe you could all turn off and go home but if you do a terrorist or defrosting thrown in the ocean all right stacie over thanks so much for being on the cause or report thank you max don't go away much more coming your way. stay right there with the lead. lead. more news today violence is once again flared up look. these are the images the world has been seeing from the streets of canada. for asians to rule the day lead. i'll come back to the kaiser report on max kaiser time now to go to athens greece and talk with dr characters told brass who is suing goldman sachs j.p. morgan and others for their role in the financial assassination of greece dr tubb ross welcome to the kaiser report hi mike starr you that should surprise you are suing not only j.p. morgan and goldman sachs but here suing the entire financial kit and caboodle even the intermediaries that deal with these fraudule

talk about goldman sachs for a moment two stories have come out s. and p. just downgraded goldman sachs and we've also got a downgrade from the wall. all straight guy all day who came in and said that based on matt taibbi exposé in rolling stone magazine that the stock's price target was lowered substantially by more than forty dollars and goldman sachs case the stock is down six billion dollars already today and making reference to this matter be article did you read the matt taibbi article your analysis or financial analyst analyst did he get anything wrong in any of his analysis or is not tied me you know he's a primate he's a journalist an investigative journalist he's not a wall street guy some people might question his analysis but reggie middleton what do you say about his analysis is it accurate well to be honest i didn't get to read the latest. article by terry but i can tell you i've been attempted to alert those who felt the goldman sachs guys. have excrement it does not smell the goldman sachs is going overvalued for quite some time starting in

article by teddy but i can tell you i been attempted to alert those who felt the goldman sachs guys. have excrement it does not smell the goldman sachs has been overvalued for quite some time starting in two thousand in the spring of two thousand and eight i made it very clear that the amount of risk in the sex tapes and running its business in the risk of the assets are now covered by the profits of doing business from an economic perspective you know they're covered from an accounting perspective and they make a bunch of accounting earnings in the price goes up but they take significant risk . for less just because of an over the last few four years it's come the pipe and they're basically. i'm going to watch my tongue here for the first time in quite some time but goldman sachs' business model is basically to take advantage of his clients that's where the excess spread comes from and that's where they could have a. training quarter with not one loss an insider trading statistically having a quarter without one day of trading losses as was the case of dawn and j.p. morgan and bank

article but harry but i can tell you i've been attempt to alert those who felt the goldman sachs guys. have excrement it does not smell the goldman sachs has been overvalued for quite some time starting in two thousand and the spring of two thousand and eight i made it very clear that the amount of risk and sex tapes in one of its business in the risk of the assets are now covered by the profits of doing business from an economic perspective you know they're covered from an accounting perspective and they make a bunch of accounting earnings in the price goes up but they take significant risk over the last two thousand and over the last few four years of their risk on the bike then. basically. i'm going to watch my tongue here for first time in quite some time but goldman sachs business model is basically to take advantage of his clients that's where the excess spread comes from and that's where they have. training with not one lost an entire trading statistically having a corner without one day of trading losses as was the case with gone with j.p. morgan and bank of america i think be

talk about goldman sachs for a moment two stories have come out the s. and p. just downgraded goldman sachs and we've also got a downgrade from a wall street guy dick go bad a who came in and said that based on mattei avi's exposé in rolling stone magazine that the stock's price target was lowered substantially by more than forty dollars and call it science case the stock is down six billion dollars already today making reference to this matt taibbi article did you read the matt taibbi article you're an analyst or a financial analyst analyst did he get anything wrong in any of his analysis or is not tied me you know he's a primate he's a journalist an investigative journalist he's not a last great guy some people might question his analysis but reggie middleton what do you say about his analysis is it accurate to be honest i didn't get to be delayed this. article by terry but i can tell you i've been attempted to alert those who felt because of the six guys. have excrement it does not smell the goldman sachs has been overvalued for quite some time i'm starting

just downgraded goldman sachs and we've also got a downgrade from the wall street guy well they came in and said that based on matt exposé in rolling stone magazine that the stock's price target was lowered substantially by more than forty dollars and goldman sachs case the stock is down six billion dollars already today and making reference to this matt taibbi article did you read the matt taibbi article you're a novelist or a financial analyst analyst did he get anything wrong in any of his analysis or is not tied me you know he's a primate he's a journalist an investigative journalist he's not a law straight guy some people might question his analysis but reggie now. what do you say about his analysis is it accurate to be honest i didn't get to delay this. article by teddy but i can tell you i've been attempted to alert those who felt they called the six guys that have excrement and does not smell the goldman sachs has been overvalued for quite some time i'm starting in two thousand and the spring of two thousand and eight i made it very clear that the amount of risk is sex tapes

just downgraded goldman sachs and we've also got a downgrade from the wall street guy well day who came in and said that based on matt exposé in rolling stone magazine that this stock's price target was lowered substantially by more than forty dollars and goldman sachs case the stock is down six billion dollars already today and making reference to this matter be article did you read the mats i.e. b.r.t. call your analysis or financial model analyst did he get anything wrong in any of his analysis or is not tied me you know he's a primate a journalist an investigative journalist he's not a last great guy some people might question his analysis but reggie made. and what do you say about his analysis is it accurate to be honest i think it could be delayed this. article by teddy but i can tell you i've been tempted to alert those who felt the cold and said skies. have excrement and does not smell the goldman sachs has been overvalued for quite some time i'm starting in two thousand and the spring of two thousand and eight i made it very clear that the amount of risk going the sex tapes an

sacking goldman sachs along between right and wrong might look great at times but for financial investors it's a green all the way to the bank even to hear how foul play is lining the pockets of wall street. and manufacturing in the usa once the heart and soul of this country now just a faded memory of the middle class so will the u.s. ever be able to reassemble. and it's a tale of two princes the first founder of blackwater the second the leader of al gadhafi and as these princes prepare to create an army for hire in the u.a.e. we explore whether the contracting words used lie with the because. good evening it's tuesday may seventeenth eight pm here in washington d.c. i'm lucy captain of you're watching our team. now in a just world those who break the law by lying cheating and stealing are usually tried and prosecuted for their crimes unless of course we're talking about well heeled executives of say i don't know goldman sachs you know in his latest piece for rolling stone magazine back to the revisits the wall street firm that he once called the vampire squid and he got a case for why

i mean, goldman has really pushed this to the edge. this behavior. they -- you know, lazard, for instance, where i worked and is now a public company, they just provide m&a advice and investment management advice. they don't have any trading, they don't make any proprietary bets. .. finishx; >> goldman sachs of the risk but at the same time they have created a huge conflict. the other tenant of their philosophy they believe the greatest managing conflict whether their client door internally in the business of managing conflict, i think that has gotten them into a lot of trouble. as you can see guess they were very smart about seeing trouble coming then making a big proprietary bet to evade them billions of dollars while the cost everybody else billions but they did not stop underwriting mortgage-backed securities causing the problem because they thought they could make money for another six months. that is the inherent conflict that cannot be managed and goldman has proven itself unable to manage the conflict at the same time as a very subtle point*

this is the goldman sachs commodity index a market where people can place bets on what they think the price of certain commodities will be look what's in this index together the oil and food back in the day it serves a useful purpose to let farmers and airlines lock in the prices of the food in oil so they can get the book straight reduce risk budget for the next year hedge against a future drought or a future oil shortage but today thanks to the thirty years of deregulation of wall street and particularly due to the commodities futures modernization act back in one thousand nine hundred ninety thousand kilograms practically anybody can jump in this market and place bets that the price of food or oil will rise and if enough people bet on it just like you know any other stock and sure enough these prices to rise and a bunch of gangsters make a whole ton of money that's what happened in two thousand and eight so that what we're seeing unfold again today is the time to force regulations on wall street to stop them from starving the world wrecking our economy i guess prices joining me now

this is the goldman sachs commodity index a market where people can place bets on what they think the price of certain commodities will be look what's in this index together the oil and food. back in the day it serve a useful purpose to let farmers and airlines lock in the prices of the food in oil so they can get their books straight reduce risk budget for the next year hedge against a future drought or a future oil shortage but today thanks to thirty years of deregulation of wall street and particularly due to the commodities futures modernization act back in one thousand nine hundred ninety thousand kilograms practically anybody can jump in this market and place bets that the price of food or oil will rise and if enough people bet on it just like you know any other stock and sure enough these prices do rise and a bunch of gangsters make a whole ton of money that's what happened in two thousand and eight so that we're seeing unfold again today is the time to force regulations on wall street to stop them from starving the world wrecking our economy i guess prices joining me now to of

that is what goldman sachs did. you may be familiar with that. goldman sachs sold mortgage-backed securities to its clients and that against them and made an absolute fortune but to cover it up there was a portion of mortgage-backed securities they were bullish on and lost a little bit of money so when regulators came to fix it they said we lost a little bit too. and that was let go. but the auction rate securities scandal kicked off a bigger meltdown in 2008 because it proved once and for all to wall street that you can get away with murder. you can take people's cash. you can tell them this is cash. this is as good as treasury bonds if not better. the minutes somebody tells you you're going to get a little more interest that is the moment you want to pull back. that is one of the lessons we learned from this. a little more interest, little more risk, little more danger, a little more lying. pull back. the product machine continues to turn out similar products. i got a call recently from people living in tent communities in hawaii. in lovely haw

the fact that, for instance, they were buying assets out of goldman's own book when they were told goldman was buying these assets off the street. they definitely did not make key disclosures that they were legally obligated to make. >> i think matt wants to see a perp walk, see someone arrested from goldman. clearly whether you think goldman broke any laws, any of us who followed this got the impression that they perhaps were not dealing in the best interests of some of their clients. >> i think they probably aren't, just like most vendors aren't always -- like look to their own interests before the interests of their clients. but here's the thing. like i think that there is a sort of real desire to have a sense of closure on this, a desire to track down a villain, figure out who did this to us and i think that really underweights the power of human stupidity. greed, stupidity and poor system design can produce really terrible results even without -- >> how are you not ashamed to do the job that you do? how are you not ashamed to apologize for billionaires that ripped off ordinary people?

this is goldman's lowest stock price since last august. rochdale analyst dick bove cut his opinion to sell after yesterday's insider trading conviction of hedge fund owner raj rajaratnum. prosecutors argued rajaratnum received some of his illegal inside information from a now former goldman board member. finally, while energy prices stabilized, cotton, wheat and silver continued their recent slide, silver slipping below $35 an ounce. and that's tonight's "market focus." >> tom: as the american job market tries to rebuild the workforce is getting older every day, 29 million american workers are 55 years old or older. this is an all-time high. one in five u.s. workers are at least in their mid 50s thanks to the baby boom generation. mark friedman is the founder and c.e.o. of civic ventures, and author of the big shift, navigating beyond midlife. welcome to nightly business report, nice to see you. >> nice to be here. >> tom: are we in a new era of the retirement years, so-called golden years? >> no, i think we're seeing the end of the 30 yea

my argument is not that goldmans was bailed out. that may well have been the right thing do do. >> you needed to add some strinkz strings. >> you need to add absolutely strict regulation that once they're back on their feet and making money again, they do not hand out these bonuses for the next five years. the money is divided amongst all the people who have helped bail them out, who have been chucked out of their homes. that's what should have happened. >> right. a lot of times when they have these bailouts and they have to structure them very quickly, they miss opportunities. we were talking during the break, and i mentioned that there were some friends of mine that i play poker with out in california. very rich guys. when the bailouts were happening, one of the guys said, oh, i have to get some of this for these buildings that i own. i said -- >> the bailouts. >> i don't think this is for -- in this kind of situation. he said, if approximate it's legal. you know -- >> exactly the point. >> the problem is -- >> you're not required

all of you let's get started you know reason edition of rolling stone reporter matt taibbi takes on goldman sachs and argues that it's time to put the corrupt thanking on trial he was on his show last night he had this to say about the current climate of wall street all the incentives that existed before two thousand made that led to all of this horrible being here and all these dramatic consequences that are all still in place and i think the most important thing to remember is that all this stuff happened and nobody got punished and that was that's the single biggest thing the set in to all of this happening all over again because i look at back in the last decade we clearly learn that wall street can do far more damage to our nation than any terrorist could ever dream up so why we're throwing trillions of dollars into our war on terror but not one dime to prevent a larger threat of financial collapse. well yeah i mean i think i mean i obviously think that we've spent way too much on wars and fiscally irresponsible and not enough regulating and for saying those regulations on wall street

forward and say no we're not going to last are able to the last time i checked wall street bankers goldman sachs didn't actually kill anyone they didn't vaporize three thousand people who spent it is a reason they didn't before i see thousand a lot of families that have been destroyed that's all tragedy has been enormous amount of child but it is not. as though you thousand people ten years ago and talk about these are these were not mom and pop investors these were institutional investors rather you know representing companies that represented companies that had their own analysts that also made bad choices so it's these were these were denied that they wouldn't have done if they didn't know anything close choices would not have been possible if the commodity futures modernization act and the grammys vilely x. about in past ninety nine two thousand if we hadn't deregulated those commodity markets and gone from no c.e.o.'s to nine hundred trillion dollars for the c.e.o.'s given you know in a world where the total g.d.p. of the planet is sixty five trillion dollars by two thousand and eight

look i think everybody would like to blame somebody and of course goldman sachs as the pig is a big fat target you know they just happen to be the smartest guys in the room in this case what really happened is we have deregulation in the late one nine hundred ninety s. and all the sudden all these position limits are are are negated you don't have to be a bonafide hedger anymore and what we finally have is a huge transnational problem and the g twenty is trying to figure out some way to regulate this on the national level there's thinking ok now we have to set position limits now we have to throw some light on the dark swap market but really i think the thing that's going to make the most difference is if we find we can get back to some transparency on actual grain reserves so people can really understand how much different countries are holding in their reserves opening up those markets so that we can actually get some real grain to calm down the hysteria that imaginary grain from grain futures has contributed to this mess big picture is that something that should be taking place in th

that's what goldman sachs did. you may be familiar with that scam in which they sold mortgage-backed securities to their clients, bid against them, and made absolute forchips, but to cover it up, there was a portion of the mortgage-backed securities they were bullish on and then the regulators said they lost a little bit too, and that was let go. the auction rate security scandal ticked off the bigger melt down to hit in 2008 and took everybody down because it proved once and for all to wall street that, you know what? you can get away with murder. you can take peach's cash -- people's cash. you can tell them this is cash. just as good as treasury bonds or better because it pays more interest. the minute somebody tells you you are # going to get more interest, that's the moment you want to pull back. that's one of the lessons we learned from this. a little more interest, more risk, more danger, little more lying going down the pipe there. pull back, pull back. the product machine continues to turn out similar produ

of goldman i think many people are starting to see the value of gold as a part of their portfolio for diversification it's always been a great hedge against the falling dollar or inflation and that seems to be what the issue is here it's a dollar issue and gold is shining very brightly as a result of this you know if the dollar was as good as gold other people would want to buy it this is the quote also from steve forbes about it but let's look around it and support that actually with what's going on around around the world this year mexico but around a hundred tons of gold that's according to the next conventional bank one of the global implications here. well i think it's a key point central banks used to be net sellers of gold for a decade they were providing most of the supply of gold in the marketplace most recently the all central banks have either been holding on to the gold that they've owned or they've been buying gold so not only mexico but russia has been buying gold the central bank of india lost a significant amount of gold a year and a half ago we know that china is buil

well look i think everybody would like to blame somebody and of course goldman sachs is that is a big fat target you know they just happen to be the smartest guys in the room in this case what really happened is we have a deregulation in the late one nine hundred ninety s. and all of the sudden all these position limits are are are negated you don't have to be a bona fide hedger anymore and what we finally have is this huge transnational problem and the g twenty is trying to figure out some way to regulate this on the national level there is thinking ok now we have to set position limits now we have to throw some light on the dark swap market but really i think the thing that's going to make the most difference is if we finally can get back to some transparency on actual grain reserves so people can really understand how much different companies are holding their reserves opening up those markets so that we can actually get some real grain to calm down the hysteria that imaginary grain from grain futures has contributed to this mess big picture is this something that should be taking

goldman? >> we all face the sword if a feeling like we are marked with a scarlet letter initially when our children are affected. there is this guilt, this feeling of what we did wrong, people are looking at us. you must have been some terrible people for a mom or a dad to run off with their children. clearly it is not the case. these are oftentimes oftentimes very badly behaved people. there is no real punitive measurement on the actual abductor. they can stay within the country they are living, filed file for a divorce or separation like parents do when they separate, couples do or they could say you know what? i'm going to give it a shot. i am going to go to this country right now i will have a jurisdictional advantage and the worst-case scenario is i get sent back. and then have the normal divorce proceeding in a country which i should have started to begin with. so, i know there has been suggestions of exit control, which is great. it wouldn't have helped me. i drove my wife and son and p

you're already aware that two of my clients, david goldman and mike call elias provided testimony today. i'm not the only family lawyer working to be sure children are protected, and i wringed when earlier there was a moment or two of concern about the motivation of lawyers, but i need to say that the american bar association family law section and international sections in particular have been asked by the president of the aba at the request of congressman smith to review the legislation that has been presented and the issues and to make recommendations on this legislation and other actions of the body. initially the american chapter of the international of lawyers proposed legislation and in providing assistance to the united states department of state. both the members of the aba and the iaml have given thousands of hours of pro bono assistance for abducted children and colleagues at the united states department of state. i am personally appreciative of the continued willingness of jacobs to listen to my concerns and colleagues and address these complex issues on a case-by-case basis

the illegal trades were in many well-known companies, including advanced micro devices, goldman sachs and ebay. defense lawyers argued rajaratnam's decisions to buy and sell were based on careful research, not inside information. they view it as a victory that, of an initial 37 charges against rajartnam, only 14 made it to trial. >> the score is 23 to 14 for the defense. >> reporter: rajaratnam is the first of 26 people to go to trial in this insider trading probe. 21 of them have pleaded guilty. rajaratnam will be back in court july 29 for sentencing. until then, he will be electronically monitored to make sure he doesn't flee the country. under federal sentencing guidelines, he faces between 15.5 and 19.5 years in jail. erika miller, "nightly business report," new york. >> susie: joining us now for more analysis on the rajaratnam verdict, steven feldman, former assistant u.s. prosecutor for new york's securities and commodities fraud task force and now a white collar criminal defense attorney at herrick, feinsteen. steven, nice to have you with us. >> hi, susie. >> susie: were you s