A panama law firm called Mossack Fonseca, 11 million documents taken from that law firm, given to a german newspaper, which shared them with a Global Consortium of Media Outlets around the world. In those documents, according to the reporters who had a chance to go through them, are accounts of World Leaders, as many as 12 World Leaders who set up shell corporations using that Panamanian Law Firm to allegedly hide assets around the world. One of the leaders under scrutiny today is Vladimir Putin. His name does not show up in the documents personally, but the names of a lot of his close confidants and inner circle do show up in those documents. The kremlin has already had reaction here and were getting reaction from some of the world capitals to this story. Kremlin saying this report was simply an information attack on russia. Also reaction from the icelandic Prime Minister who is being interviewed by a Television Crew when he was asked about this. He stood up, walked out of the interview , but said i have never hidden assets. Also, a statement from a law firm called velum that ukrainian poroshenko, that the allegations are groundless. Reverberations around the world today and more to come as reporters continue to pour through that 11 million document trove and find out where all the money is hidden, guys. Thank you. Certainly Everybody Knows the name Vladimir Putin. But there are many other names, some well known, some more mysterious, mentioned in that investigation. Robert frank has more on that side of the story. Press reports say 29 billionaires on the forbes list were linked to yore shore structures involving Mossack Fonseca. Very few of the billionaires are named, but forbes saying many appear to be from russia and Eastern Europe including several putin allies like rottenburg, childhood friend of putins and the ukrainian president petro poroshenko. This is interesting, no american billionaires or american clients have been named in any of this leak. But u. S. Assets, well, they have become a favorite destination for some of the money. The miami herald reporting that 19 foreign nationals created offshore entities that purchased Miami Real Estate and eight of those foreign nationals have been linked to corruption or tax evasion in their home states, include ing several from brazil. Half of all real estate purchases in miami are all cash and overseas buyers bought 6 billion worth of homes in sound florida last year, thats about a third of local spending. Offshoring is perfectly legal in many cases, but it has helped support the art market. Reports say russian billionaire dmitri rebelev created trusts to purchase more than 2 billion worth of art including a famous madiani, sold by steve cohen, by the way. The trusts were disclosed last year and created for Estate Planning purchases but this could add a chill to the art market, diamond markets, all the markets. We dont know how much support came from this offshore money. Are you surprised at how many friends of putin seem to have a lot more assets than what their typical salary would indicate . Who knew playing cello could be so lucrative. This cello player, allegedly, according to the reports, making 100 million or more. Yeah, you know, the group of people, their professions, we knew some of the billionaires, but right under the radar, need a lot of people to be on the Shell Companies. And a lot of them didnt have jobs you would think they would be making that much money. Makes me think i picked the wrong industry. Picking up the cello. How do the wealthy and the powerful stash their money offshore . And more importantly, how do you regulate all of this . Answers now from heather lowe, legal expert in financial corruption, Money Laundering and global tax havens and joins us now with Global Financial integrity. Take us through how something, maybe not this specific instance, but how Something Like this would come about, how would a law firm get established, how would money be brought in and how would money be brought out. Sure, it is actually very easy to do this. In my line of work, im working on the movement of illicit money around the world. I had moments where i thought it would make me a lot more money to go to the other side on this because it is that easy. You create, you know, put out a shingle, set up a business and you can start creating companies on behalf of people without any training. In wyoming, there was the historic example of somebody who didnt have i think he had an eighth grade education and had created a company to create companies for other people and had thousands and thousands of companies on his books. It is very simple to do. Now, you know, the people that set up Mossack Fonseca were are very well trained attorneys, very well educated, and they learned the ins and outs of moving money around the world anonymously. And so they started a trade in doing just that. Heather, are you surprised that we havent seen any big american names yet as we get more and more information about these 11 million documents . Do you think well see prominent americans . I think we will. I dont have any inside knowledge as to who they will be at this point, but i certainly heard that the u. S. Wave is yet to come. And i look forward to that. Because i think this is a topic that americans really need to know and understand. The amount of illegal money that comes into this country using offshore companies but also u. S. Anonymous companies is staggering. How much of this would be considered illegal in panama . It is really difficult to know. You talked about the purchase of the modigliani using offshore Shell Companies set up by Mossack Fonseca, and the question you were alluding to but never got to was what is the source of the funds that went into those accounts held by those Anonymous Companies that then were used to purchase the modigliani. The person who sets up the Anonymous Company doesnt have to ask that question. Theyre not required by law in any way, pretty much anywhere in the world, to ask that question. Banks are supposed to be asking that question. But the actual people that create companies dont. And thats something that absolutely needs to change. The other thing that needs to change is that we need to know when we create these companies who are the owners and controllers of them . Sometimes called the Beneficial Owner of a company. But, heather, let me ask you about that, i think back to when i started covering the early days of hugo chavez, in venezuela, and he sees legitimate Business People their property, he woke up one morning and said im taking that business, im taking that business. And i hope for those peoples sake they had money somewhere else. And if he knew who owned Shell Companies, he would have gone after those as well. We live in a country where we generally can believe, i know some people scoff at this, that our politicians are less corrupt than in other countries. We live in a much more just society than the rest of the world. Is there ever a reason why isnt there sometimes a reason why money should be hidden because you live in a place where the government could really take everything you own . We have seen it. It is a risk. But that doesnt mean, you can have the money abroad, but it doesnt mean that that that can necessarily be seized by your government, and it doesnt mean you have to not disclose it. It is important to pay taxes on the funds that you have abroad. It is how we pay for the basic social services that, you know, that keep a country running. When it comes to americans. Certainly. But other countries as well. There are many other countries that where the tax base is how you fund basic social services. Heather lowe at Global Financial integrity. A real pleasure to get your insight today. Thank you. Thank you. What are the implications of a leak this size . What will the fallout look like . Lets bring in richard b. Strong, ceo of front line antibribery. We had you on last week to talk about another big leak. We didnt think we would have you on this soon. You run this firm right now, but one of the reason you run it is because you were involved in a corruption scandal, you wore a wire for the feds, served time and now you do consulting on this. Tell me something, when you look at this leak, how did this happen . Is this an inside job . Somebody inside who is angry and wants the world to know or is this some really good hacker . Can you tell . It is hard to tell yet. Im still trying to unpack all the documents and all the news reports. But it certainly demonstrates the ease at which criminals can access the Global Financial system. And what else . What are your other observations . Are you surprised there arent any americans thus far . I am. However, the law firm does have an office in miami. And there are other tax shelters and trusts that have been identified in the United States. So there is certainly going to be a u. S. Wave to this, but i think the first wave that were going to see is enormous International Pressure on panama to shore up its antiMoney Laundering legislation and enforcement. Thats probably going to be the first wave that we see. And we have seen this before. If you look at Swiss Banking secrecy laws, for example, and we have seen the tremendous movement that switzerland has now made toward banking transparency, so it can be done. But as we learned with switzerland, it certainly takes time. You can go after panama, richard, and if you succeed, then center like this will probably pop up somewhere else in the world. You want to capture the end use or the beginning use of the money i would imagine. What would be the best strategies to do that . Thats going to thats a great question. Thats going to be the real challenge because in many of these countries, well, were already seeing some of the roads are pointing to the political leadership, what is going to be the local political will to address these issues where youve got sort of an embedded culture that tolerates this type of secrecy. You have a lack of legislation and you certainly dont have the investigatory and prosecutorial resources to really address this type of Money Laundering and banking secrecy. Or maybe not even the will, richard, right . I think about russia, do they have the will to seek this out . When you see all of these friends of Vladimir Putin who seem to hold a large number of assets, beyond the obvious, what do you think . Youre absolutely right. And thats where it starts. Political will. And if that is not there, we cant expect more legislation or International LawEnforcement Corporation and for those countries to participate in addressing these issues on the local level. Youre exactly right. When some of the people named are current leaders, former leaders, sons of former or current leaders, or related to current administrations. Well, maybe we have to look at brazil and petrobas where you have a National Corruption scandal where you have millions of people protesting in the streets about the corruption of the political leadership. So maybe in some countries thats what it needs to come down to as we see the tempo of these interNational Corruption cases starting to quicken. We see some of the people in fifa that are in this set of documents, so it is almost like these corruption scandals are starting to bump into each other. I start to get a sense, richard, of why it is that Vladimir Putin may never want to leave office. 20 or 30 years ago leaders were allowed to go in exile, right, and sit on a porch somewhere. But if he leaves office, could he not be prosecuted . The asymmetric risks for him are so high. Why would he want to leave . He would have to face potential charges . Thats exactly right. As we have seen with fifa, the teeth of International Law enforcement cooperation are very real. Thats an excellent point. Thanks, richard. Good to have you on. Thank you, again. Appreciate it. Lets bring in dom. We have to start with polti homes. Executive shakeup. Their ceo is in essence being forced out. Watching those pulte shares. They lost a quarter of the value over the past year. Another one to watch as well, well move to the larger cap side of things, apple, above its 200 day average price for the First Time Since the fall, november of last year. Thats a big one as well. Look at apple, of course, a big bounce off of the lows we saw earlier this year. And Consumer Staples stocks, large cap here in terms of general mills, it is trying for its eighth straight upday, investors checking the yield. Hit a new intraday session high. Trying to stay positive now. If it does, it would be its eighth straight positive day. Up 13 this year. Thanks. If youve been following politics, you might notice that people seem angrier this election cycle. Where is that anger coming from . Thats next on power lunch. Who are you . Im vern, the orange money retirement rabbit from voya. Vern from voya . Yep, vern from voya. Why are you orange . Thats a little weird. Really . Thats the weird part in this scenario . Look, orange money represents the money you put away for retirement. Save a little here and there, and over time, your money could multiply. See . Ah, ok. So, why are you orange . Funny. See how voya can help you get organized at voya. Com. Man 1 man 2 i am. Woman exmilitary . Man 2 four tours. Woman you worked with computers . Man 2 thats classified, maam. Man 1 but youre job was Network Security . Man 2 thats classified, sir. Woman lets cut to the chase, here. Man 1 whats youre assessment of our security . Man 2 [ gasps ] porous. Woman porous . Man 2 the Old Solutions arent working. Man 2 the world has changed. Man 1 meaning . Man 2 its not just security. Its defense. Its not just security. Its defense. Bae systems. Great time for a shiny floor wax, no . Not if you just put the finishing touches on your latest masterpiece. Timings important. Comcast business knows that. Thats why you can schedule an installation at a time that works for you. Even late at night, or on the weekend, if thats what you need. Because you have enough to worry about. I did not see that coming. Dont deal with disruptions. Get Better Internet installed on your schedule. Comcast business. Built for business. Welcome back to power lunch. Im michelle carusocabrera. There is a lot of anger in this election cycle. Thats fueled outside by candidates like donald trump and Bernie Sanders with prime we ars and packed rallies. Steve liesman is here with the exclusive results of the cnbc all America Economic survey. Steve . Thanks very much. We are chronicling anger. Im able to tell you where it comes from, what the source is, and also what it means for actual election or at least president ial preferences here. Lets look here. We asked two questions backtoback, what the control group . How do you feel about your own personal financial situation . You can see here, a majority of americans, 50 , are both satisfied and or happy here. 20 say theyre neutral. And anger on the personal thing kind of muted at 21 . We ask about the Economic Situation in the country, and you can see here it goes beyond the 50 , like 56 of the country are angry or dissatisfied about the financial or Economic System here. You can see just 18 are happy or satisfied. We go on to politics. We have a control group question here. 802 americans surveyed around the country, 3. 5 margin of error. You see here, a little bit sort of even on this issue of the political system in their state. But then look at this, when it comes to the political system in washington, what is the number here . 74 of the public is angry or dissatisfied with a big dissatisfied number here. If you take a broader look here, notice the anger over the political system is higher than the anger over the Economic System. Now, i want to show you what that means for political preferences. When it comes to those who are angry or dissatisfied about the Economic System, here is how it breaks down in terms of president ial references or that they say about who is best for the overall economy. In the overall poll, theyre dead even on this question of who is best for the economy. Look at the angry or dissatisfied vote, there it is, there is the trump advantage over hillary clinton, 27 to 19. Lets look at the same issue here, when it comes to politics. Here is the angry or dissatisfied, now we look at the how it goes between voters, 28, 21. Hillary gets some of the angry vote, but more goes to donald trump and percentage of it, say 15, 13 also goes to Bernie Sanders. Thats how it splits for the two frontrunners, ang heer helpingt the republican frontrunner. Got it, thanks. Dont move. We bring in ben white here in the studio. You saw the numbers, people are angry about the economy. But theyre far more angry about politics. Why is that . I think what steve has poin