A2A with Nomi Prins

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Nomi Prins is the author of the must read book, "All The Presidents' Bankers". It was an honor to have her stop by for this webinar and this recording is well worth your time and attention.

Over the course of this 35-minute presentation, Nomi discusses:

  • How the abolition of The Glass-Steagall Act helped to lead to the Financial Crisis of 2008
  • The still-growing market share of The Big Six, TBTF banks
  • The continuing interconnectivity of bank balance sheets and derivative positions
  • How much longer this current system can be maintained
  • The likelihood of "bail-ins" as a remedy for the next financial crisis

Again, I can't stress enough the value of Nomi's book. Similar to "The Creature From Jekyll Island", it's almost a history book in that it details the process of how we've found ourselves in this position...where The Federal Reserve is seemingly all-powerful and the major banks are all "Too Big To Fail". Please take the time to read it. Only by knowing how we got here can we ever hope to find a way out.




Barfly's picture


That was truly a great A2A, Turd. It came off very well. Nomi actually revealed something very interesting in her answers about working at the Vampire Squid. Back in 2001, they were disregarding her work with risk modeling. That tells me something. Either they didn't care and were obsessed with any possibility of making money regardless of risks like some kind of compulsive gambler - OR - they knew the fix was in and they couldn't lose. My gut tells me the latter is the case.

heathbr's picture

Anyone buying


SS121's picture

unedited nomi notes

notes nomi prins
sound check l/c
start record
tf- intro nomi, wrote book worked walls treet, ny times writer, member of bernie sanders council, she's plugged in, welcome nomi
np-thanks! tf-book is on par with jeckyl island 
tf- glass steagal act was put in place and the bankers killed that, will it ever be back??
np- have to be huge breakdown, new leaders, and public awareness, so no.  it was passed in 1933, after depression and 1929 crash.
depositors money used to not be insured, fdr and hoover and bankers even were behind glass stiegel to keep risk apart from deposits.
book describess the whole deal.  lead to fdic etc.
over the years, worse bankers wanted to get a hold of deposits, and merge across states, etc... then during clinton glass steigel got dismantled by financial modernization act.  washington lost accountability of banks
tf- book reference banks are tbtf, where does it go?
np- new era, banks subsidized by fed, qe, fed carries bank debt etc..  the big 6 are subsidized.. where do we go?  they get bigger, nobody cares to fix.  back in the day there was an interest in doing right, now.. nope.  all plastered over, they are delusional.
tf- move in 10 year german bund says meltdown, all are intertwined and we seem teetering...is there a way out other than cb support??? how will next crisis be papered over?
np- we shouldn't even be here, it's astonishing.  but there always seems to be a backup, and governments seem to think it's ok.  all the markets are separate but have risk so it's interlocked.  if multiples go down together the cb can't go lower rates forever.  there are still countries that haven't got to zero. so it's still going.
tf- at g20 meeting all agreed to change laws to facilitate bail-ins. do you see that?
np- absolutely.  deposits are what keeps them in tbtf status.  fed used to be fallback, now deposits are fallback.
tf- ??Arthur-  when will it crash??
np- i don't know, but it's not stable.  now running on irrational statements and plastering over insolvency.. when?? global processes maybe play out, ecb, pboc, it's all playing out and keeping up appearances.  crash requires multiple events, or an end to currenty paperover practices.
tf- sub-prime autoloans... run of defaults cascading, how would they deal with it.
np- disallow large withdrawals, all the stuff will be said.  it goes back to pre 1929 days.  it's all supposedly insured but it's so fragile that it may not matter
??Russ- is unraveling time compressing??
np- as long as there is room to drop rates the cbs can still posture.  it ends when there is no more room, no where to go.  it's all still about piling on securities, derivatives etc..
??Ian- how much faith do you put into gov stats??
np- numbers are either misleading, or based on other bogus data. 
tf- so is it accurately tabulated?
np- there own reports don't even look good, media focuses on headline number.  if you dig in, their raw data is painting a bad picture.  
??Matt- how did you ever work for GS?  how did it end?
np- wasn't there very long. resigned after year and half.  too much internal pressure to do wrong. 
tf- time for final four!!!!
np- sure...
f4-1-  still on bernie's council?
np- i don't think so. his focus may have shifted
f4-2  good resteraunt in NY
don't know, i live in L.A.!  hold on... artoroz pizza is a good old school place
f4-3  what is NFP number for tomorrow
np- i have no idea, ... headline number worse is my guess, 
f4-4 do you own physical precious metal?
np- physical silver
tf- i give you 1200, you buy gold or silver?
np-i'd go 2/3 silver 1/3 gold. silver is maybe more risk but a less expensive way to play gold!

tf- towards wrap up, all the prez bankers is on amazon.
np-paperback is updated
closing out, np is in los angeles,
sign off, record off.
np-great questions!!
admin chat

excellent a2a np and tf!!

Turd Ferguson's picture

Thanks, Barfly


It's funny...Nomi is smart and I enjoyed her book so much that I was nervous about asking dumb questions and sounding stupid. So much so that I fear I ended up asking dumb questions and sounding stupid...at least more so than usual.

So, anyway, thanks. I'm glad you thought it was OK. 

Response to: First
silverflower's picture

Panic on the Bond market?


Last man standing: Mr. ECB Draghi Dracula and his sister and brothers!

silverflower's picture

I can't remember you asking a stupid question ever.

Quite the opposite is true: Turd is getting better and better by the day. Thanks dude, for all you do for us awakened sheeples that are members of your army. Will give it a listen tomorrow morning on my way to Cologne (work.)

GuerrillaCapitalist's picture

You Never Sound Stupid...

My dear Neighbor, Craig:

You are a natural interviewer and ask detailed questions with sound follow up. I enjoy your easy going conversational style, not to mention the incredible amount of information you and the rest of this wonderful community provide.

I know it's natural for us to be our own harsh critics and I must tell you keep doing what you're doing. All of this is a grand bargain thanks to your hard work, knowledge and statesmanship.


wildstylechef's picture


You were awesome as always fear not in furure as you are with friends and we all think highly of you, well done my friend


canary's picture

Comedy chanel...

"Market forces" at work today. It's better than "Saturday Night Life". More comedy tomorrow.

CaptK's picture

Bill Bonner on Deflation, Inlation and the War on Cash

"How many old people and zombies do you need before an economy comes to a halt? Nobody knows. But the drag from debt is observable and calculable. Over the last three decades, approximately $33 trillion in excess debt has been contracted – above and beyond the traditional ratio to income – in America alone. And growth rates have fallen in half. That’s because dollars that would otherwise support current spending are instead used to pay for past spending. Our old debts have to be retired with current income. The money doesn’t disappear, of course. Some goes to creditors who spend it. Some comes back as capital investment, which is a form of spending. But as credit shrinks, generally, so does the economy. And that brings us to the impossible situation we’re in now. In order to get back to a healthy ratio – say approximately $1.50 worth of debt for every $1 in income – you’d need to erase all that excess that has already been contracted. In other words, you’d have to take $1 trillion out of the consumer economy every year for the next 33 years. It would be the longest and deepest depression in US history."


"Today, a long depression in the US would be unbearable. The public couldn’t stand it. Six out of ten households live paycheck to paycheck. Can you imagine what would happen if those paychecks ceased? Supposedly, the US economy is still growing… with the stock market near record highs. Yet, one out of every five households in America has not a single wage-earner. Among inner-city black men, ages 20-24, only 4 out of 10 have jobs. Half the households in the US count on government money to make ends meet. And 50 million get food stamps. What would happen to the cities – and the suburbs – in a real depression? What would Janet Yellen do? Would she rehash the words of Andrew Mellon in 1929 to “liquidate labor, liquidate stocks, liquidate farmers, liquidate real estate… it will purge the rottenness out of the system. High costs of living and high living will come down. People will work harder, live a more moral life. Values will be adjusted, and enterprising people will pick up from less competent people?” Mellon was just suggesting that creative destruction be allowed to do its job. He was the last Treasury secretary to make such a forthright and honest comment. Thenceforth, Treasury secretaries and central bank governors could no longer accept the tough love of a free enterprise economy. They had to offer bogus rehab and claptrap therapy. They had to stop creative destruction. They had to “tell it like it wasn’t” because that’s the way people wanted it. They had to pretend to make a better world by improving the market economy. Today, a central banker or Treasury secretary who let deflation purge the rottenness from the system would be dismissed before sundown. Too much wealth, too many reputations, too much power and status depend on the continuation of the credit expansion. Instead of a Mellon, we will have a Greenspan, a Bernanke or a Yellen. And we will soon find out whether Mr. Bernanke spoke the truth in 2002 when he said: We conclude that, under a paper-money system, a determined government can always generate higher spending and hence positive inflation. Threatened with deflation, the authorities will want to turn the tide in the worst possible way. What’s the worst way to stop deflation? With hyperinflation."


Safety Dan's picture

Craig,  The A2A was really


The A2A was really enjoyable. While I have not read Nomi's book, sounds like she enjoys living life in LA and speaking her mind. I enjoyed her comments about bank deposits, and the government stats. I know my family thinks I'm some kind of conspiracy nut with tin foil hat. Wish we could enlighten the yet unlearned. She has gone a long way to help that cause. Your interview has encouraged me to search out her book and read it. 

Honestly Craig, I know I'm repeating what's been repeated, but true.. You are one great interviewer...

Live in the limelights! You deserve it, King of Turdville.. Hail King Turd!!

lund175's picture


Great job!

Way to hard on yourself.

Did anyone find it odd that Nomi did not seem  to have a deep  interest in silver or gold?

With her background I would think she would know fiat is going down.

Safety Dan's picture

Tomgram: Nomi Prins, Hillary,

Tomgram: Nomi Prins, Hillary, Bill, and the Big Six Banks

Posted by Nomi Prins at 8:01am, May 7, 2015.

The Clintons and Their Banker Friends
The Wall Street Connection (1992 to 2016)
By Nomi Prins

[This piece has been adapted and updated by Nomi Prins from chapters 18 and 19 of her book All the Presidents' Bankers: The Hidden Alliances that Drive American Powerjust out in paperback (Nation Books).]

The past, especially the political past, doesn’t just provide clues to the present. In the realm of the presidency and Wall Street, it provides an ongoing pathway for political-financial relationships and policies that remain a threat to the American economy going forward.

When Hillary Clinton video-announced her bid for 


Book Excerpt

Print this item

All the Presidents’ Bankers: The Hidden Alliances That Drive American Power

Posted on May 6, 2014


tyberious's picture

Sorry if anyone has asked

But besides small silver holdings, where else does she keep, save, invest her money?

Barfly's picture

Actually, that never came up...

I did notice that when she was asked the question about the $1200 and given a choice of a) or b), she chose c) - a 2/3rds split.

Sharp cookie, there.

MrSteve72's picture

Pirate Captain Kidd’s treasure found off Madagascar

A TEAM of American explorers claimed to have discovered silver treasure from the infamous 17th-century Scottish pirate William Kidd in a shipwreck off the coast of Madagascar.     



Sir Peter Latterman Fortenton's picture

off topic but of great interest

I apologise to Turd and all Turdites as this is off topic but I listened to an excellent interview posted here some days ago with Merrill Jenkins talking to a FED staff from the 80's. His classic (out of print) book "Money the greatest hoax on earth" is available in pdf here, (a detailed expose of fiat & gold). I felt I had to share this with Turdville.


Ruislip Ranger's picture

Didn't find that A2A that

Didn't find that A2A that inspiring TBH, I found Nomi quite middle of the road to listen to.

Old Howard's picture

Nomi Uninspiring

I 2nd that R Ranger

Old Howard's picture

Nomi Uninspiring

Turd does a great interview. I get that same feeling of condescension I see with Hillary Cliton.... 

Old Howard's picture

Nomi Uninspiring

Of course my above post was in reference to Nomi and not the Turd.........

Whitecastle123's picture


I think Nomi walks a neutral fine line in what she is willing to talk about.  I would bet she could blow the lid off a lot of juicey issues if she wanted to.   She's way too smart for that.  

amarula4's picture

Turd Submitted by lund175 on May 8, 2015 - 3:03am.

Good point - I have waited with bated breath during several of her interviews for comments on Apocalypse Now and GOTS and gold-n-silver real money, but been totally out of breath so many times. She is really a creature of the system, just hacked off with the way she was treated as she is very clear-eyed and as straight as they come. The system is rotten at the core, she just does not know it yet, she thinks it is reformable and fixable. Very bright, very articulate, very admirable - she has got the blue pill problem, not yet even considered the red pill.

gold slut's picture

@ Whitecastle123

'I would bet she could blow the lid off a lot of juicey issues if she wanted to.  She's way too smart for that.'

Yes, way too smart, and probably allergic to nails as well. wink  I think that what we got is all she is ever going to tell.  Shame, but I don't blame her.

Fred Hayek's picture

Good stuff, Turd.

I got a more positive feel for Nomi's stance on things than I'd gotten from some of her earlier interviews at the time that her book came out last year.  In those, she came across a little bit (a little bit!) like one of those pathetic Michael Beschloss writers who *never* criticises power, who looooooooooooooves power and anyone with power, who almost implicitly endorses a caste system.  He can die in a grease fire for all I care.  I wouldn't piss on him to put it out.  Maybe she was playing to her perceived audience but in the interviews I saw she focused on the almost gossipy angle of the Aldrichs or Warburgs or whoever knowing Wilson or FascistDictatorReprobate and how "fascinating" that was. 

lakedweller2's picture

@fred hayek

Looking forward to your book!

SS121's picture

Nomi was excellent

She's not going to start raving about space aliens hiding gold in the Marianas trench,  ... or Bigfoot hunting expeditions that stumbled across JPMs secret Billion oz. Silver stash.  She's not that type of person.

She is primarily driven by a deep sense of right and wrong.  She worked in the Wall St. world and left because she saw that attempting to do the right thing is no longer even a tiny part of that culture.

Nomi described in detail that back in the day, both politicians and bankers saw the importance of keeping the public's deposits separate from risk.  I.e., they had at least some sense of right and wrong. 

So maybe she was a little naive if she went to Wall St. thinking that there might be people there who still wanted to do the right thing.  But once she saw there were not, she left.  AND then she wrote her book.    

To all the good people in the world who realize that the banking world is screwed up but might be hoping that the good people of Wall St. will prevail, Nomi sadly says that from everything she witnessed first hand, "it ain't happenin".   That's a message that many normal people in the world needed to hear.

And she's a Silver stacker.  

Safety Dan's picture


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