Hula hoops made right here in america. The metaphor for what American Companies have to jump through to bring jobs back here to america. Real money. This is real money. You are the most important part of the show. Tell me what is on your mind by tweeting me or hit me up on facebook. Another big bank pays for its misdeeds. Citigroup agreed to pay fines totaling 7 billion. That is a lot less than the 12 billion the government initially demanded, but its a lot more than citigroups own initial offer of 383 million to avoid a costly civil trial. According to a statement of fact that citigroup had to sign. The bank knowingly packaged shotty mortgages into securities. One citi trader told a fellow bank employ that citigroup, quote, should start praying end quote, because so many of the loans it packaged and sold were likely to go bad. They were faultily marketed to investors as Higher Quality assets. This comes after a 13 billion settle with Jpmorgan Chase in november. Next is said to be banc of america, which may have to pay fines topping 12 billion. The losses sustained by investors suckered by citigroup, helped trigger the worst financial crisis since the great depression. It happened because mortgages were bundled together by the thousands then parcelled out to unwithing investors. That in itself isnt bad, thu the banks represented the entire bundle as safer than it really was. The global flow of credit came to a virtual stand still. You know what happened next. Companies strapped for cash shed expenses as quickly as they could. That meant laying people off. Folks who lost their jobs couldnt make their mortgage payments. It triggered a near Global Economic collapse. We are still paying the price. As it turns out, citi reported its earnings today for the three months ended in june. The bank said its profits plummeted 96 compared to the same period last year, thats thanks in part to 3. 8 billion that the bank put aside in anticipation of todays ruling. That turned out to be pretty optimistic. No matter because investors appeared to be relieved. Citis stock gained 3 in trading today. Still citigroups troubles may not be over. Eric holder said todays settlement doesnt absolve the bank or any of its employees from potential criminal charges in the future. In the meantime where is the money going from the fines . Mary snow has that story. Reporter as the 7 billion settlement, the largest chunk is a fine. It will pay 4 billion to the justice department, 2. 5 billion will go to consumer relief, which includes things like principle reductions on financials of the five states designated to get money, california will get the most with 102 million. That money can also help consumers. Citigroup is just the latest major bank to pay billions for actions leading up to the financial collapse of 2007. In late 2013, the department of justice and Jpmorgan Chase reached a 13 billion settle. In 2012, the doj settled with five bank and Mortgages Services for 20 billion. The potential is certainly for hundreds of thousands of homeowners and borrowers at the end of the day with all of these resolutions to be helped by the consumer relief that we have in these cases. First reports from banks involved in the 20 billion National Mortgage settlement indicate roughly 600,000 home owners received Loan Modifications or refinancing, but that number has net to be independently confirmed by a monitor overseeing sthet lment. One housing advocate says not enough home owners in trouble are getting help. We should be seeing a lot more people saying i had a principle reaction. A lot more people saying i got the go benefit, but were not seeing it. Prosecutors say they are not done and there are several several several institutions they continue to investigate. Mary snow, al jazeera. The governments new aggressive stance enforcing penalties big time is striking. But there are penty of questions that americans consumers and tax payers will to ask. Many people want to know why no senior bankers have gone to prison for their role in bringing country to the brink of bankruptcy. This is the weirdest part of this. Some people say these settlements are a bit perverse, because the people who really paid are the homeowners. Anybody who made bad decisions back in those days isnt paying a fine. Thats true. Thats correct. And thats part of the issue. Thats also part of the glorious portion of today. The shareholders did earn 0. 03 per share. They put aside enough money to give their shoulders something to look forward to. They were short. Yes. But the bottom line was it was up so they are happy. Yes. It was. This is a loaded question because what is fair and what isnt fair . Citigroup is making the case to pay 7 billion, given they had a proportion at itly smaller role in the debacle as they argue, this is too big of fine. Yes, wall street is arguing that we were smaller therefore we should pay less. However, thats exactly what the department of justice wants to get away from. They want to get away from the ideas that your size means this is what your punishment will be. They want the punishment to be what you did not how much you did. And the evidence was strong . Yes, and i think the department of justice is almost scared to bring up criminal charges in 2001 criminal charges were brought in themron case in 2005. And all of those charges were overturned. So you face destroying a company in the process, that every single one of those emails matters, and you need a jury understand thats the thousands and thousands that were pored through in evidence. Yes, the attorney general has left the door open to say criminal charges may come. It used to be in the old days that you would have these is the lmentes and you did not admit or deny any responsibility. Now hes making them say, yes, we did this, and he is not saying you are absolved. This is correct. And i think the department of justice will act on further charges based on how wall street acts as a whole rather than the individual banks. What is your sense of as you saw in marys story, we are dont really have a sense of where this money goes. Were at 45 billion in settlements now, and by the time all of those ones you just mentioned go through, we could be close to fines. I dont think there is a sense this changes anything, but what is quite interesting is that they said this must go to relief for real human beings that can go to real destination destinations. And it must be done by 2018. So the department of justice in this particular settlement said 2. 5 billion has to go directly to relief that people can identify, go into lenders that they can speak to and say im claiming my portion of the citigroup settlement. So i think while its not real y an overall feeling, they are allowing people to feel some consolation. Is there any sense that the banks are Getting Better at sounding less tone deaf in wrong. I think thats a difficult thing for banks to say. Even with b p they did not want to say what we did was wrong, but they will say we will take responsibility. Polythank you so much for joining us. Thank you very much. All right coming up, manufacturing in america comes full circle. Companies like the one that make the houla hoop you see here are trying to bring jobs back to america. Ill tell you why that is easier said than done, much like what my colleague is saying here. That story and more as real keep it here. Families ripped apart. Racial profiling sometimes they ask questions. Sometimes they just handcuff people. Deporting dreams. Destroying lives. This state is literally redefining what it means to be a criminal alien fault lines Al Jazeera Americas hard hitting. Theyre locking the doors. Ground breaking. We have to get out of here. Truth seeking. Award winning investigative documentary series start with one issue education. Gun control. The gap between rich and poor. Job creation. Climate change. Tax policy. The economy. Iran. Healthcare. Ad guests on all sides of the debate. This is a right we should all have. Its just the way it is. Theres something seriously wrong. Theres been acrimony. The conservative ideal. Its an urgent need. And a host willing to ask the tough questions how do you explain it to yourself . And youll get. The inside story ray suarez hosts inside story weekdays at 5 eastern only on Al Jazeera America we are living in weird economic times. The u. S. Economy looks and feels very different depending own which barometers you are looking at, and how granular you get. The job market provides a good example. The u. S. Economy created 288,000 jobs in june. That is the fifth straight month of 20,000plus job gains. A feet that has not been seen since the tech boom of the 1990s. That is the view from 10,000 feet. Drop down 5,000 feet, get a closer look. Things get cloudy. The number of people working parttime because their hours have been cut back, increased by 275,000, to 7. 5 million in june compared to may. The government says these people ar are working parttime for economic reasons. It raises the question of why the u. S. Economy isnt creating more fulltime jobs for people who want them. Lets look at another troublesome fact about americas ground. Even though were five years into a recovery, wage growth is not robust enough for help middle class workers. Average Hourly Earnings rose just 2 compared to a year ago. Barely keeping up with the rate of inflation. Thats a problem. The job market and wages are just part of this picture. There are plenty more, including a stock market that continues to reach records but whos gains are not being felt by the 45 of americans that dont own stocks. Or the rebound Housing Market where the homeownership rate is now below 65 for the first time in years. The devil is in the details thats according to chief economist at a security company. I talked to him about the unbalanced recovery. The problem really comes down to two things. The global issue, where we have excess supply of goods and services. And then we have the tierney of threemonth earnings, which Means Companies have to hit these double digits earnings target every three months, and the easiest way to do that is squeezing back costs, and the biggest cost is labor. And now we have a record share of National Income going to the corporate sector as opposed to the labor sector. And thats why you get the unevenness in the economy. Because those people who have the assets, who are the owners of capital are reaping all of the rewards. If there were a political show, which it isnt, you would have somebody saying this isnt fair. Im not thinking about fair right now. Im wondering about what the longterm effects on the economy are . Well, you begin to become more like europe. You wind up with an economy that winds up are growing at or about trend. Worse it winds up as a japan scenario where you have inflation that cant accelerate growth. And or the asset holders begin to suffer as well, as you start having a downward spiral. The asset holders. The top 5 or 20 , whatever you want. The issue is until this becomes a problem, they tend to control the levers of power, i dont mean to say anything bad about it. Its just the way it goes. Until they see this inequality, this lack of wage growth as a major problem, were not likely to see change. What is the best argument to them to say this will come back and bite you . They are already starting to sense it. When i get out and talk to corporations and the chief financial officer, the ceos, the operating officers, there is this growing sense that something is wrong, that they are fighting against headwinds that they just cant figure out what they are doing with. And then have children in school or going to school and they are sitting there with student loan debt. And they are beginning to see what is the real outlook for my children going forward. You are starting to see that shift into the discussion, and what do we do about it . And the real answer is, you have to do something outside of the bounds of the threemonth tyranny of earnings, and no one that. There are so much things we can do, and then there are things from the outside. Downward wage pressure, because there are lots of people around the world who will work for much less wage than americans will. How do you counter that pressure from the rest of the world . Thats a real basic problem. On the other side of it should be a fiscal policy profile that is designed to give relief to allow households to have more spendingable cash and focus more on domesticrelated products rather than imported products. But the political environment isnt allowing us to get it done. And the Federal Reserve is the one engine that has been trying to get things going. Now you have a mix in the federal Federal Reserve, and they are starting to pull back that stimulus. And i think thats why you saw the First Quarter with negative gdp, because the Federal Reserve is taking some of that stimulus away, and the economy has him. You paint a bleak picture if we dont fix this. But in fact you are optimistic that the economy is dynamic. If you were running for office this year, and you were to say here is how we make a better economy, what are some of the basics . The first thing is basically i would change the tax laws. The problem with americas threemonth tyranny of earnings. If i change the capital gain tax laws, where anything after five years a tax free, suddenly you have a longer focus. Youll be getting ceos, being questioned, what is your fiveyear plan. I bet if you ask 90 of them today, what is your fiveyear plan, they dont have one. Right. And that is just the opposite of what you have happening for for example michael del [ technical difficulties ] you need companies to have that background where they can go and do things that may be less than a 10 return in the next year, but make a higher return over a longer period of time. Office . I would love to try, but i dont think they would let me. Okay. In the casino business no one bets in pink, as in pink slips. Ill have more on what atlanticty needs to do to survive. Plus hundreds of millions of dollars to clean up space. Ill tell you how they plan to do it and why. On tech know, what if there was a miracle . Graces stem cells are in this box. That could save the live of your child. Were gonna do whatever we can would yo give it a try . Cell therapy is gonna be the next big advance in medicine tech know, every saturday go where science meets humanity. This is some of the best driving ive every done, even though i cant see. Tech know. Were here in the vortex. Only on Al Jazeera America. Drug companies are not kicking the habit of doing deals to lower their tax bills. The generic drug maker is buying a piece of abbott labs for more than 5 million. The Pennsylvania Company will reincorporate in the netherlands to lower its corporate taxes and free up cash that is held overseas. It gives them a wide array of abbott brands. And one of the largest inversion deals ever is on the table. They are close to buying the Irish Company shire for 53 billion. Here is a festering u. S. Health care problem fit for the emergency room. Visits to the er. Way too many people heading to the emergency room dont need to be there, but they often go there because they dont have healthcare coverage. That makes healthcare a lot more expensive for the rest of us. The hope is that obamacare will reduce some of that by giving more People Health insurance. In the meantime a partnership in the seattle area could cut costs and provide a model for reducing unnecessary er visits. Alan tell me more about what this is about. Good evening, ali. This is a big City Hospital and a small government funded community clinic. They are trying something new. This is a Pilot Program aimed at solving one of the more difficult problems in our healthcare system. Heart palpitations put this patient right where he should be, in the emergency room, getting a thorough evaluation. Im joe. Nice to meet you. And next door a patient with an infected toe is right where he should be. At a walkin community clinic. Receiving treatment from this nurse practitioner. Its taking the two entities and putting them together. Howard hopes to cut down on visits. Prescription refills, sore throats, ear aches, those types of things where you dont need to go into an emergency room. Reporter 95 of hospital visits reported as unnesz. And 11 are potentially avoidable. The law requires anybody coming to an emergency room receive treatment. But the personnel are not allowed to suggest that there might be alternatives that they could say go to the clinic down the way and receive a more appropriate level of treatment. But patients here might walk by the afterhour clinic sign and get the hint. Hopefully that might draw somebodys attention and say, sew, okay, maybe thats really what i need. Maybe i dont need to go to where all of the ambulance traffic is. The clinic pays the hospital a dollar a year in rent, and shares space used for other purposes during the day. The 7monthold Partnership Benefits both entities. The er is right there, in case walkin clinic patients have serious problems. And the clinic gets to see more people who they can help get into the system. We are helping keep people out of the er who dont need to use those resources, and getting people into our organization, into healthcare, which is what we want to do. Its a partnership both hope can be a model for us. Follow us. We have worked out some of the clin kinks, and see if you can apply it in your region. Reporter both are hoping to provide the right care at the right place at the right price. We dont have statistics from the hospital yet. But Linda Mcveigh at the clinic says they have seen 3,000 patients since they opened their doors. Them. Alan, we know emergency room procedures are expensive. In doing this, does the hospital risk giving up some revenue stream to this clinic . This they do admit that they might. And it might be a problem in the shortterm. Those visits from my research can range from 900 to 1,300 in a middle range. So that is a lot money that might not be coming into the hospital. But a lot of those patients are indigent patients using the emergency room as their primary care, and a lot of people might not actually end up paying foez bills if they can be siphoned off of the