been coming to her for the last 15 years, and she's been cutting my hair since the day i walked into this place 15 years ago. donna, we wish you well, we'll miss you, and god bless. that's it for us. "america live" starts right now. jenna? jenna: see you tomorrow, jon, thank you. jon: bye-bye. megyn: this is a fox news alert on a very heated hearing into the fast and furious gun-running program. attorney general eric holder grilled by house lawmakers on the botched operation that resulted in u.s. weapons falling into the hands of suspected mexican drug smugglers. welcome to "america live," i'm megyn kelly. it is round two for our nation's top law enforcement officer. republicans grilling

>> that requires your assistance on that, there is only one alternative the congress has, and it's called impeachment. >> i don't have the ability to do a top to bottom investigation at this point out of deference to the investigation that is being done by the inspector

general. that does not, however, preclude me from taking action that i think appropriate based on information that comes to my attention in spite of the fact that the inspector general has an ongoing investigation. megyn: william la jeunesse live on this story as he has been from the beginning in if our west coast bureau. william? >> reporter: well, megyn, the attorney general took fire from several republicans. congressman darrell issa of california accused him of untruths, of withholding documents and filibustering. issa said he found it implausible that out of over 5,000 e-mails turned over by justice to his committee, none of them were to or from the attorney general making it impossible for issa to determine what the attorney general knew about a program that he says he didn't. >> you know, you're in the middle of filibustering, so i'll let you answer. i have two more things to quickly go over, and then you can have all the time the chairman will give you. does it surprise you that these

boxes, five boxes represent just what one gun dealer gave us voluntarily? well, in fact, this seems to be all the information you have responsive to our subpoena. does it cause you to think that, in fact, we believe you were withholding documents, we believe that, in fact, there is more production? so my final question, and you can answer all of them for as long as the chairman wants is do you today have documents responsive to the lawful request of the oversight committee that have not yet been granted? >> with regard to the documents that you talked about, we've not withheld any documents that are responsive to the matters that you have, that you have asked us about. we have withheld information that pertains to ongoing, um, investigations. >> reporter: now, holder blames the u.s. attorney's office saying alcohol, tobacco and firearms says no one on the staff despite briefings knew

they were helping criminals buy hundreds of guns being sent to mexico. we also have another exchange between representative james sensenbrenner of wisconsin and also with the attorney general. basically, sensenbrenner says that no one has been fired so far and that the first who should go is assistant attorney general lanny breuer for misleading congress. >> well, first, let me make something very clear, and in response to an assertion that you made or hinted at, nobody in the justice department has lied. >> why was the letter withdrawn? >> the letter was withdrawn because there was information in there that was inaccurate. the justice department let of february -- >> okay, well, tell me what's the difference between lying and misleading congress in this context? >> well, if you want to have this legal argument -- conversation, it all has to do with your state of mind and whether or not you had the requisite intent to come up with something that could be

considered perjury or a lie. the information that was provide inside that february 4th letter was gleaned by the people who intercepted that letter after -- >> well, okay. >> reporter: and, megyn, this was extremely partisan with democrats blaming president bush in an earlier option and saying, basically, we need more gun laws to prevent things like fast and furious. megyn: we will continue to monitor it and bring in the news as happens. william, thank you, and we will be joined by one of those republicans doing the grilling about less than an hour from right now. in the meantime, we have this aecoming in for you, breaking news from virginia where we are getting word of a shooting on the campus of virginia tech. the school says it happened in a parking lot near the school's coliseum, that's an athletic facility. the college issuing an an alert saying, quote, gunshots reported, coliseum parking lot. these are live pictures coming back to us right now. continued, quote, stay inside,

secure doors. emergency personnel responding. call 911 for help. virginia tech, obviously, very quick to respond to this type of thing in light of its history. now, they have a suspect, he is described as a white male wearing gray sweat pants, a gray hat with a neon green brim, a maroon hoodie and a backpack. we're going to try to get some more details on this for you, of course, virginia tech has quite a history not only with their massive campus massacre there a few years ago, but prior to that there was an incident on campus, and that college among all colleges is now prepared to at least alert students which was one of the issues after the last shooting on virginia tech that it was criticized for. now they have a system in praise to alert the students -- place to alert the students, and we'll get more details as to exactly what's going on there, we hope,

momentarily. another alert for you, former new jersey governor jon corzine is testifying right now. he's about to get a grilling from lawmakers about the collapse of mf global which is a brokerage firm he ran. he used to run goldman sachs, then he was a u.s. senator, the governor of new jersey, he was almost the treasury secretary under president obama, and now this firm has collapsed, and there is talk about him not only facing lawsuits, but potentially criminal charges. $1.2 is missing. here's the moment where he gets sworn in, and corzine, the man who was also our treasury secretary as i mentioned, now written testimony, he has no idea where the money went. let's just take a listen as stu varney of the fox business network gets teed up to comment on this. let's just take a listen for a moment. >> the truth, the whole truth and nothing but the truth, so help you god? >> i do. >> i thank you. please, be seated, mr. corzine. do you know you have the right to counsel? >> i do, sir.

>> please activate your microphone, senator. >> i do, sir. >> is your counsel in the room? >> my counsel is. >> would you, please, state his name for the record? >> andrew la sander. >> thank you, senator. please, begin your testimony when you are ready. >> thank you, chairman. megyn: and -- let's just listen to the first couple of remarks. >> members of the committee, like all of you, i am devastated by the enormous impact on many people's lives resulting from the events surrounding the mf global bankruptcy. of course, my distress and sadness pale in comparison to the losses and hardships that customers, farmers and ranchers and others, employees and investors have suffered. their plight weighs on my mind every day as the chief executive officer of mf global at the time of its bankruptcy. i truly apologize to all those affected. before i address what happened,

i must make it clear that since my departure from mf global on november 3rd this year, i have not had access to many of the relevant documents which are essential to my being able to testify accurately about the chaotic days preceding the declaration of bankruptcy. the members should also understand that the committee turned down by request to testify voluntarily in january. by that time i would have obtained and reviewed relevant records so that i could be more helpful to the committee. while i intend to be responsive to the best of my ability today, without adequate time and materials to prepare may be unable to respond to various questions members might pose. other questions given my specific role in the company will be questions for which i simply have no personal knowledge. make it very clear, many of your questions may well be ones i myself have.

when i joined the company in late march 2010, mf global was primarily a voice-based broker that provided execution and clearing services for products traded in derivative markets on exchanges around the world. the firm had reported losses in five consecutive quarters before i arrived, and it had lost money in each of the previous three years. on my arrival at mf global, management and board advised by an outside consultant devised a new business plan. megyn: all right. it's a 21-page statement. we're going to talk about the highlights now with stu varney who's been watching this. stu, this is a big deal because this guy, i mean, i told the viewers his history, but we're talking $1.2 billion that they say is missing, and it's a bipartisan inquiry here, both democrats and republicans are very concerned about where that money went and whether mr. corzine improperly lobbied to have certain rules relaxed so he didn't have to report certain

things, and on and on it goes. outline the specifics for us and what do we expect from corzine today. >> reporter: what you're looking at is something unique because this man is at the pinnacle of power in business, wall street and in politics. now, what he's accused of, his company has lost, can't find $1.2 billion. so jon corzine's judgment is under challenge here. how on earth could you lose $1.2 billion? you can't account for it with the experienced background that you've got. his honesty is in question, specifically the question is, did he mingle his customers' money with the company's money as the company was going under? and the third challenge is flat out fact. where is that $1.2 billion? what he's about to do is not going to plead the fifth. he will answer questions. so he's avoided the embarrassment of not answering questions, but he's jumped right into legal jeopardy.

because he is in legal jeopardy by answering questions. i suspect he's going to say i haven't got access to the documents, i'm sorry, i can't recall to try to get out of that legal jeopardy. megyn: that's right. because we have an advanced copy of the statement he's reading, and there is a line, quote, i simply do not know where the money is. and he talks about how he had little expertise or experience in certain operational aspects of the business, and this is what we often hear from ceos when they, when their companies run into trouble. you know, it wasn't me. i didn't have my hands that deeply into it, and i don't know. but, stu, already we've seen lawsuits against him and mf global, and now we've got, i think, eight different investigations from, you know, the sec, i think, to the fbi looking into whether criminal charges might be possible here. what is -- because why? because you can't, you know, what's at the crux of what they may have done? >> reporter: under sarbanes-oxley which governs corporations and the law governing corporations, it doesn't matter if accounting

department was at arm's length. it doesn't matter if you say you didn't know what was going on. you are the chief executive officer of that company, you are legally liable for what goes on with the accounting and the finances of that company. that is corzine's legal liability and his jeopardy. megyn: this is the first time in more than 100 years that congress has subpoenaed a former senator to testify. how extraordinary this is, what we're seeing on capitol hill today, stu. thank you. i want to tell our viewers we will be monitoring mr. corzine's statement as well -- as i told you, 21 pages, that's a lot of talking -- we'll pull the highlights and talk about that in just a little bit. we just got a picture of the suspect in this shooting on the campus of virginia tech. it'll be ready in one minute, we'll show it to you as soon as we have it. we are also hearing that the shots fired were across the street from west ambler johnson where the shootings took place back in april of 2007. we will have a live report three minutes away.

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megyn: back to our fox news alert on the shooting at the campus of virginia tech in blacksburg, virginia. the school says it happened in a parking lot near the school's coliseum which is an athletic facility. the school issuing an alert saying, quote, gunshots reported, coliseum parking lot. stay inside, secure doors, emergency personnel responding. call 911 for help. national correspondent steve centanni is live in our d.c. bureau. we've got a team head today the scene right now as well. steve, what do we know so far? >> reporter: yeah. well, as you know, the university's very proactive about notifying students. you mentioned they're being advised on their web site, there are other systems for keeping students in the loop and keeping them safe and indoors and out of the line of fire that might endanger them. so on the web site which has the latest information from the university web site saying now

not only has there been a suspected shooting and a suspect identified, but a police officer has been shot. that's the latest from web site from the university down there. a potential second victim is reported at the caged lot. stay indoors, secure in place. now, as you know back in april of 2007 sun by cho opened fire on this campus killing 32 people, and he killed himself as well. it was one of the largest shootings in a single incident in u.s. history, so certainly authorities not taking any chances now. they're keeping students indoors and out of harm's way as much as possible as they investigate. there is some information about the identity of this suspect. not his name, but simply a description that has gone out. he's a suspect described as a white male with gray sweat pants, gray hat with neon green brim, maroon hoodie and a backpack, on foot towards

mccombes, and people are being advised to call authorities if they see anything. but, of course, the university police, university officials very vigilant, on top of this. students are being told get out of the way in case there's any further danger. the situation very fluid, and we'll keep you posted. megyn: a police officer has been shot, as you reported, a potential second victim is reported at the age lot. we're being told that is a parking lot being used in particular most often by freshman that's about a quarter of a mile away from the dorms, so now we're hearing at least one police officer shot, a potential second victim -- potential, that's in the words of the authorities at virginia tech -- in the cage lot a parking lot about one-quarter mile away from the dorms. more on this as we get it at a campus that has already seen much more than its fair share of bloodshed. steve, thanks. well, just ahead, new fallout over the obama administration's policies on israel. the republican hopefuls accusing president obama of being too

hard on our ally. >> over the last three years, president obama has instead chastened israel. >> while his secretary of defense rails that israel get back to the damn table, quote, with the palestinns. >> it's always israel's fault no matter how bad the other side is. has to stop o. [cheers and applause] megyn: michael reagan joins us live on that in three minutes. plus, it was supposed to be an experiment involving a cannonball, but no one told the homeowner who was in the line of fire. hey, the new guy is loaded with protein!

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megyn: fox news alert, again, we are reporting on this shooting that has taken place at the campus of virginia tech down in

blacksburg, virginia. this from the virginia tech web site. they have reported that a police officer has been shot, that a police officer has been shot and that there is a potential second victim reported at a parking lot nearby. they are advising the students to stay indoors, to secure themselves where they are right now, to call 911 for help if they need it, and they have alerted the students that emergency personnel are responding. they have described the suspect as a white male with gray sweat pants, a gray hat with a neon green brim, maroon hoodie and a backpack. saying that he is on foot. again, asking anyone who sees him to call 911. we're trying to get more information for you. as we have it, we will bring it to you right here. in the meantime, there is new fallout today over the obama administration's policies on israel and some recent comments made by key administration officials. during the republican jewish presidential forum last night,

many of the gop hopefuls there accused president obama of being too soft on iran and too hard on our ally, israel. >> he visited egypt, syria -- no, not syria, saudi arabia, iraq, turkey, he even offered to meet with mahmoud ahmadinejad. yet in three years in office he hasn't found the time or interest to visit i israel -- visit israel, our ally, our friend. no, over the last three years president obama has instead chastened israel. >> this one-sided, continuing pressure that says it's always israel's fault no matter how bad the other side is has to stop. >> israel does not need our president demanding gratitude for being the best friend that israel has ever had while his secretary of defense rails that israel get back to the damn table, quote, with the palestinians. >> this torrent of hostility

towards israel, it doesn't seem to be coordinated. it doesn't. it seems from my perspective to be a natural expression of this administration's attitude towards israel. megyn: joining me now, michael reagan, chairman of the reagan group and political consultant. michael, thank you for being back with us. so you saw one after the other yesterday of these gop presidential hopefuls coming out, making this a significant issue. and then last night on "special report" charles krauthammer came out and put it this way. he said, it is egregious what the defense secretary said about get back to the damn table. the quote is get itself to the damn table, saying that israel needs to do that, saying this administration is, quote, blaming the victim. your thoughts. >> well, absolutely right. charles krauthammer's right, the republican possible nominees were all right yesterday when they gave that talk yesterday at

the reagan center there in washington d.c. you might remember that my father as solid as he was for israel only garnered about 40% of the jewish vote in the united states. that was huge at the time. think about this, barack obama in the last election got 78% of the jewish vote. and so you have the republicans stating the obvious. you have a president who, in fact, has not been friendly towards israel, certainly hasn't been friendly towards net an ne, a defense secretary who takes the side of the palestinians, and now we're dealing with the muslim brotherhood in egypt, and egypt was the center point that kept everything, basically, together in that area of the world. what's the president going to do? and the president has not been accepting or supporting of israel, especially when he said earlier this year let's move everything back to the 1967 borders which would put the palestinians in charge of every christian site in that area of the world. megyn: what if that one specific comment from leon panetta, that

israel needs to get itself to the damn table, meaning the negotiating table, is that consistent with the facts? >> no, that isn't consistent with the facts. i mean, here's israel who's dealing with ca tour shah rockets being thrown into their country every single day, and you never hear anything about that from leon panetta, the president of the united states or whatever, and you have a country who is our only friend, our only ally in that area of the world. and, in fact, every time they try to do something there is more rockets. every time we open our mouth and say get back to the bargaining table it just, in fact, puts another nail in the coffin of israel, gives more support to the palestinians, more support to the muslim brotherhood and the enemies of israel. we need to let the world know that israel is our friend, and we will defend her if necessary. and at the same time, you see a president who, in fact, holds his hand out to ahmadinejad and

the iranians and won't be tough on them. megyn: and yet, you know, debbie wasserman-schultz, chairman of the dnc, was on this program yesterday and said the following, michael. listen here. >> when it comes to who talks the talk and who walks the walk, it's democrats and president obama who have resolutely stood by israel. president obama has the best record of standing by israel's security of any president in american history. megyn: i mean, is she just making that up? there's some evidence to support that, no? >> well, no, there's not a whole lot of evidence to support that. in fact, the jewish community, in fact, doesn't support it. look at new york. look at the state you're in. fact of the matter is that the ninth district there in new york city, first time in 90 years, went republican when your good friend congressman wiener was let go out of office. now, you had the jews in new york, in fact, understand that and come to the side of the republicans because they get what's going on in washington, d.c. and the lack of support of

the jewish community of israel. but the big, big issue is you still have the urban, secular jews which is the majority who no matter what barack obama does, they will, in fact, vote for barack obama in the next election. megyn: president obama got 78% of jewish voters back in 2008. there is a question about what percentage he'll get this time, but it would be, it would be pretty surprising if he got anything less than a majority based on history. michael reagan, thank you. >> thank you. megyn: well, we've got new details coming in right now on this shooting at virginia tech. we're going to bring those to you, three minutes away. also, the president has spent weeks attacking what he calls wall street fat cats for making huge amounts of money due to a lack of financial controls, but the white house has been strangely silent about jon corzine and the meltdown at mf global. just ahead, a closer look at corzine's political past and how his troubles are playing in washington.

>> your jobs, corzine was at the forefront. he worked with me to develop the recovery act, but he's also one of the best partners i have in the white house. we work together. >> barack obama and i were literally sitting at a desk in a high-rise in chicago beginning to plan how we would try to get this economy out of a ditch, literally, the first guy i called was jon corzine. i literally picked up the phone and called jon corzine and said, jon, what do you think we should do? [cheers and applause] let me get you a free tank of gas -- how's that sound? progressive saved me money, and i'm saving you money. [ chuckles ] now these guys are protected with progressive. come on around. we'll fill up your tank for you. free gas! 5 more inches. w you're lined up for some free gas and savings, eh? [ horn honks ] hey, we're trying to save here. i came in for this. yeah, fill it up, too. thank you. don't thank me.

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megyn: fox news alert, and we are continuing to follow developments on a shooting at the campus of virginia tech in blacksburg, virginia. the school says it happened in a parking lot near the school's coliseum which is an athletic facility. we are hearing that it may have happened following a traffic stop. there are reports, well, the campus itself is confirming that one police officer has been shot. this, of course, this poor campus, you know, back in 2007 who could forget the blacksburg massacre that happened on this campus when a young man named sun by cho unleashed hell on that campus, killing two students in one dorm early in the morning, then going back to his dorm room to reload, to send e-mails, went to the post office to send a missive to some in the

news media and then went out and killed 30 students and professors in another part of the campus. that university came under intense scrutiny in the wake of that in part because they did not alert the students after the first shooting that there was a gunman running around campus. he had not been apprehended. well, they have leshed from that -- learned from that mistake, folks, and they are issuing alerts by the moment. trace gallagher with more. trace? >> reporter: a university newspaper now is reporting that police officer who was shot in the coliseum parking lot has now passed away, shot and killed the police officer. and to give you some context here, there are reports of a possible second shooting at a different parking lot. now, the different parking lot is called cable parking lot -- cage parking lot, and the concerning thing for authorities has to be from the coliseum parking lot to cage parking lot, you have to go through a number of academic buildings. this gunman, reported gunman, is still on the run.

there were some earlier reports that police had actually engaged in gunman, but there was no definition of what that means, were they chasing him, were they in a standoff with him, were they in a fire fight with him? that remains unclear at this point in time. we do know that you see some students kind of walking around on campus. the campus is said to be on lockdown right now, the transit has stopped, and now authorities are searching for this gunman who was allegedly engaged by police. the second victim, alleged victim, so far very little information about that right now. we are still waiting for police in blacksburg to report back to us on scene. there have been a number of reports of ambulances and first responders reporting to the campus right now, but the whereabouts of this gunman is the key concern and exactly what is transpiring beyond that picture that's coming back to us right now is live, megyn, but the question now is what part of the campus are authorities kind of setting up a perimeter and looking for this alleged gunman.

megyn: you know, your heart has to go out to the students on that campus and to their family members who -- it's got to be in the back of your mind when you make a decision to go to virginia tech, just the history of that campus. there was an incident prior to the massacre, the one in 2007 with the gunman on campus, then came the massacre in april of '07, now you get reports of a shooting, perhaps one, as many as two people, and it is a sprawling campus. it is very large. you know, trying to track down one gunman at a school this size on a campus this size could be like trying to find a needle in a hay stack. hopefully, somebody's got a line on him, but we'll try to continue to follow this to see -- >> reporter: and it's important to point out, megyn, if i might, the last shooting, the shootings were two hours apart which is why this communication system on campus is so imperative to be in place and to be followed because the first shooting, remember, happened prior to him going into

that classroom, locking the door and opening fire. it happened in one of the residential buildings. so that's why virginia tech, the campus police and the local police will go on and make sure that this campus is fully secured. megyn: right. >> reporter: because no one know what is the next move of an alleged gunman might be. megyn: right. because what happened in that first, in that incident a couple of years ago was that cho went into a dorm room, killed a young woman, and then killed a man who came in to help that young woman, and then there was a two hour delay so students who wound up going to norris hall which is where the massacre happened of 30-plus, you know, people, they perhaps would not have gone. if they had put that campus into lockdown after they found out about the first two murders, there's a question about whether those students would have gone to class, whether those murders would have taken place. this has all been looked at not just at the campus level, but at the city and federal levels since then, and you can see virginia tech's response today is very, very different than what it was back in april of

'07. trace, thank you. joining me now on the phone is britney wilson, a student at virginia tech. what have you heard this morning? what was the first news you got? >> the first text message was that there were gunshots heard on campus, and they proceeded to update us with everything you guys have been updating. megyn: so you got notification via text message? >> yes. and i also heard a siren. megyn: do you live on or off campus? >> i live downtown. megyn: how close is that to the campus? >> it's walking distance, it's about, like, a 20-minute, 15-minute walk to squires. megyn: and we are getting, the reports we have now are that there was one shooting, across from ambler johnson which is where those first two students were shot and killed back in '07, and that a potential second victim was reported at the cage lot. tell us about the cage lot. >> the cage lot is a huge, it's a huge parking lot where a lot

of commuters park and residents. so that's just around, right past mccombes, so i'm guessing he went down the street. megyn: what's mccombes? >> it's the finance facility we have -- fitness facility we have here. megyn: okay. and what's the scene as you sit off campus, but nearby, what is the scene there at your home and out and around, about your home? >> it doesn't seem like too much is going on around here. obviously, we're all staying indoors, underneath -- not taking any extra risks. nothing else is really going on around downtown much. megyn: and our information is that there have been three alerts, one saying gunshots reported, stay inside, secure your doors, call 911 if you need help, then another telling you what the suspect looked like, and another saying that he remains at large and talking about a police officer being shot. are those the three you've receiverred? >> yes.

and a description of the shooter. megyn: and is there any discussion about who that might be? >> no clue at all. megyn: no idea. >> we know as much as you at this point. megyn: britney, tell us -- you know, i was just saying our hearts go out to you because, you know, when you were deciding where to go to college, did it enter your mind, you know, might it be dangerous to go to virginia tech? might people be more inclined to open fire on a university that has a history for some reason? >> that's, that wasn't a thought in my mind. i think that virginia tech is a dangerous campus only because of shootings, but it's really not like that when you're here. it's really a great place to be, and the thought never crossed my mind to think it's dangerous. megyn: yeah. i mean, it's a huge university and huge campus, and violence can happen anywhere. it's also an excellent school. good luck to you, thank you so much. >> thank you very much. megyn: we'll try to keep you updated, folks, as we get more

details. if there's any silver lining to what happened back in 2007 is that you would hope, you have reason to believe that the police, both campus and city wide, are experienced in this sort of lockdown and search for a shooter. lessons were learned in the wake of cho's violence. and we will hope that it concludes much differently this time around. well, moments ago they took a break in the grilling of attorney general eric holder over the fast and furious gun-running sting gone wrong, but not before a fierce exchange with congressman jason chaffetz. he joins us live top of the hour. are you receiving a payout from a legal settlement or annuity over 10 or even 20 years? call imperial structured settlements. the experts at imperial can convert your long-term payout into a lump sum of cash today. you noticed! these clothes are too big, so i'm donating them. how'd you do it? eating right, whole grain.

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and why for these patients, when diet and exercise alone aren't enough, i prescribe crestor. adding crestor lowers bad cholesterol by up to 52%. and is also proven to slow plaque buildup. [ female announcer ] crestor is not right for everyone. like people with liver disease... or women who are nursing, pregnant, or may become pregnant. simple blood tests will check for liver problems. tell your doctor about other medicines you're taking. or if you have muscle pain or weakness. that could be a sign of a rare but serious side effect. is your cholesterol where your doctor wants? ask your doctor if crestor is right for you. [ female announcer ] if you can't afford your medication, astra zeneca may be able to help. megyn: fox news alert, and now we have breaking news from the campus of virginia tech, we are getting reports that the suspect has been apprehended in the wake of a shooting on that campus earlier today. according to the university, there was one shooting of a police officer, there may have

been a potential other shooting, they said, on a nearby parking lot, and now we are getting reports that the suspect has been apprehended. trace gallagher, what do we know? >> reporter: we know the suspect, apparently, was apprehended at the performing arts building, megyn, which is interesting because we talked about the two shootings, and now there are reports there might have been a triangle of actually shots fired, one in the coliseum parking lot where a police officer was reportedly shot and killed, another in the cage parking lot which is through a number of academic buildings and a third shots fired report in the i parking lot, so kind of a triangle of parking lots. and yet the performing arts building where the suspect was just ap rehelped by police with his hands up is on the other side of the campus totally from the coliseum parking lot. so that means the gunman, the alleged gunman would have had to make his way all the way throughout the entire campus to get to the performing arts building where he now, according to the collegiate times, has been taken into custody.

we'll have more updates as they come in on the virginia tech shooting, megyn. megyn: wow, trace, thank you. this shooting comes a day after an administrative judge considers virginia tech's appeal of a $55,000 fine levied against it in connection with the april of '07 shootings. that, in that case they concluded that virginia tech was too slow in notifying students and faculty, etc., of the safety threat. and also said that the alert that they sent out was not specific enough. we see a very different response from the university today. well, we've also got breaking news from the pentagon today. top military officials claiming that video coming out of iran is real, they definitely have our top secret spy plane and all the technology that goes with it. but wait until you hear what happened back in washington when word came down about a chance to get this thing back.

megyn: well, president obama has pointed a finger squarely at wall street for initiating the financial crisis we've seen over the past few years, railing against, quote, fat cat ceos. he's just a sample. >> too often we've seen wall street firms violating major anti-fraud laws because the penalties are too weak, and there's no price for being a repeat offender. no more. the financial crisis hit because the irresponsible about of some -- irresponsibility of some on wall street. a strong middle class can only exist in an economy where everyone plays by the same rules from wall street to main street. [cheers and applause] megyn: but we've heard little about the man in front of congress today, jon corzine, former new jersey senator, former new jersey governor and former ceo of a now-bankrupt

brokerage firm. more than a billion dollars of investor money is missing from his firm, mf global. and we've heard little or nothing from the administration. is that the right call? joining me now, leslie marshall, a syndicated radio talk show host and fox news contributor, and lars larson, a sindhuated -- syndicated radio host as well. lars, should the administration be commenting on this since president obama has been so vocal about condemning the fat cat wall street folks who take advantage of the laws and commit frauds and so on in light of the close relationship that the president, the vice president and others in the administration have had with jon corzine? >> megyn, absolutely he should be, and he should do it to show that the fact he described this guy as his partner in the white house and then the man turns out to be the head of a company where a billion is missing and corzine is saying, i don't know where it is. i really didn't know how the company was operating. that kind of admission from a

ceo? if anything, the president to inspire confidence in the financial institutions of this country, should be talking about it to show he's not playing political favorites, but this guy's a democrat. it's hard to even find a mainstream news media report these days that mentions he's a prominent democrat and a prominent friend of the president. my prediction is the president won't say one word about corzine, and that's just dead wrong, and it belies everything else that president obama has been saying about bad dealing on wall street. megyn: leslie, do you think we would have heard from the white house on this in any way, you know, through a surrogate, through jay carney, the spokesman, if corzine had been a republican? >> i certainly would hope not because regardless of their political affiliation and, larceny, i've d lars, aye got to teach you a little thing called google. but right now this is the first of three congressional hearings. you have two probes by the securities and exchange commission, you have an investigation by the fbi and

also by federal prosecutors. for the president to speak out at this time before probes and investigations are completed would not only be wrong, but could hinder any type of information or result that's obtained as a result of these investigations and probes. so i think the president and the white house are doing the right thing now regardless of this man's -- megyn: go ahead, lars. >> megyn. here's the thing, the president has spoken out men plenty -- plenty about wall street, and there are still investigations going on there. by the way, did you notice the department of justice hasn't brought a single indictment against anybody in wall street for what happened in the late summer and fall of '08? and that's the question, too, if president thinks there was so much bad dealing going on, then why hasn't his department of justice taken any concrete action? so the president doesn't hesitate to comment on all the bad guys and in some cases calling out specifics, but then he leaves his political buddies out of that particular -- megyn: leslie, what about the money that corzine has donate today the obama campaign?

apparently, he bundled contributions from obama 2012, many of whom have ties to wall street, and the campaign said last week they'd return the donations if he's charged with anything. is that good enough? [laughter] >> well, yes, i think it is, quite frankly, because when mr. corzine for a decade of his life was a senator and a governor, you know, the president, the democrats, the vice president, etc., backed him. but right now mr. corzine is neither. mr. corzine is a private citizen. mf global is a private company. quite frankly, lars, even republicans on the right when corzine was head of goldman sachs were very happy with the risks he was taking. mf global did not have the money, did not have the experience, and corzine had been out of the game for ten years. it was stupid, quite frankly, and a very bad move and way too risky, but that's something he did historically when he headed up goldman sachs. megyn: hey, megyn, i'm answer your question.

megyn: meg quickly, quickly. >> money guys a lot of silence. megyn: all right, guys, ten seconds to the break. new reports of more shots fired on the campus of virginia tech. that's right after this break.

megyn: fox news alert. on the shooting at virginia tech. there were reports a shooting a little more than an higher ago. the university confirms two people are dead. they told us a police officer had been shot and a potential second shooting. now they are confirming two people are dead. the campus is on lockdown. we heard reports that an arrest had been made. but now that is in question. steve centanni starts our coverage in washington. >> reporter: we have had conflicting reports. one that there was an arrest.

and the person according to the "collegiate times" the newspaper on campus said the person who surrendered at the performing arts building is not under arrest. so that's confusing. the latest from down there on the v.t. web site. two people as you mentioned fatally shot at virginia tech. we had early word that a police officer was one of them. that this might started with a traffic stop involving the police. that police officer could have been shot there and apparently did die. and then there was person confirmed dead. so where is the suspect in that's the big question. the campus is on lockdown. this happened four years ago in 2007 when 32 people plus the gunman all were killed because of the shooting by that student

and his mental condition was questioned. and there were questions about why the university didn't have his full mental and medical records. there were two hours between the two shootings during which time the students returned to some of the campus buildings. there was no lockdown and they weren't warned. now the campus is proactive in warning students to stay indoors, call 911. stay behind locked doors. certainly the university is taking no chances this time around. but the question remains where is this gunman and who was the second victim. if one police officer is dead, who is the second person. that wraps we stand. megyn: joining me is amber emma. she is on campus at an undisclosed location. describe the circumstances that you are experiencing right now. >> right now i and my fellow

students, we are staying together waiting to hear all the news from everybody. we did arrive on campus at the parking lot right after everything was going on so it's been scary. megyn: i understand you witnessed the police officer on the growngtd after he had been shot. >> we thought maybe he got hit by a car or something. after we were starntdsing there we were figuring out something was wrong. we saw cars and we started hearing things about shooting guns. so we immediately got out of the parking lot. megyn: you were pulling into the parking lot or you just arrived in the parking lot? then what exactly did you see? >> we saw millions of cars flying around on the way. as soon as we pulled in we saw the police officer on the ground with people surrounding him and the lights flashing. we pulled in kind of near it. there were a lot of student in

the area watching and figure out what happened. we saw him. and at that point the siren went off on campus. megyn: there was a siren that alerted the students there was some sort of emergency? >> probably 10 minutes after we were sitting there the sirens started going off and we were alerted. megyn: these are live pictures coming back to us of the campus at virginia tech where there has been a shooting. according to university officials two people have been killed. a police officer and one other. they are not describing the other person. there are conflicting reports about whether they do or do not have the suspect in custody. what have you heard on that score from the university? >> we have a few of them saying -- there is always --

some people text messages saying but we are not really sure. we are waiting to hear. megyn: the last we heard in terms of the v.t. alert, the virginia tech alert. they sent out three. the first was shots reported. second described the suspect. the third an officer has been shot, stay indoors. have you received a fourth v.t. alert after those three? >> that's the last one we received. megyn: as far as the university's hundred cases with you the latest information is the suspect remains at large. >> that's the last thing we heard. there have been rumors there are other gun shots heard on campus. but it's hard to tell what's actually happening. megyn: can you tell us what the "collegiate times" is? is that your local newspaper? >> yes. megyn: they are reporting that the person who surrendered -- we

earlier reported a person surrendered and it appeared was unarrest. that person who surrendered was wearing reportedly a gray shirt and jeans. but the virginia tech alert said the person that they were looking for was wearing gray sweat pants, not jeans. and spoke on the top about a maroon hoodie. so it' not clear whether the person who surrendered at the performance arts building was the same person as the one they described as the suspect. are you getting collegiate times updates? >> i never heard anything about the description of the person that surrendered. we just heard that they had. all we heard was the gray sweat pants. megyn: as you look out your window or wherever you are, as you surveyed the scene, describe it for us.

>> well, at first we didn't think that something too bad happened. it wasn't until -- the number of police officers that arrived on the scene and we realized what was going on. it was calm, then the panic built up. megyn: amber, it's got to be tough for you and your fellow students what's going on. the latest advice from the campus is to stay indoors, continue to protect yourself. stay secure in your place, lock the doors and wait for further information. if you get additional information we would be glad to have you share it with us as we try to keep our viewers informed as well. thank you, amber, all the best to you. back to that story as soon as we have more on it. there is another big story developing on capitol hill. this one focusing on operation fast and furious. the botched gun trafficking

sting where weapons wound up in the hands of drug traffickers in mexico. moments ago congressman jason chaffetz hit's. >> attorney general eric holder and his decision avenues of this scandal first broke. >> you sent an email that said some of these weapons have been directly traced to muferreds elected officials in mexico by the cartels. so bar the door when we unveil this baby. how is it you never had a discussion with your counter part in mexico about this. a "los angeles times" article december december of this year. at no time were we made aware there might have been arms trafficking permitted. in no way would we have aloud it because it, an attack on the safety of mexicans. megyn: he just finished questioning the attorney general. what were you going after there?

>> the idea that we have known about this problem with fast and furious since december of last year. and here it is a full year later. the attorney general has never spoken to president obama, never spoken to janet napolitano, hasn't spoken with the mexican officials, it says to me he doesn't take it seriously. we have a dead u.s. agent, we have 200 dead members cabs, a helicopter shot in mexico with the mexican police on it, and he doesn't have 15 minutes to pick up the phone and talk to any of those people, yet he can go to the caribbean for five days? megyn: he has come out today and forcefully said no one at the department of justice has lied. period. do you accept that? do you believe that many the end of the matter? >> no, we absolutely don't believe that. this is i think a dash of incompetence with a whole lots

of potential coverup. that's why he testified he has not given us all the memos and documents. he has no intention of giving us all of those documents, that's problematic. i worry about how we make sure this doesn't happen again. and he's not even talking to the key players in his own organization yet alone people in the administration to be in a position to do this. so it's not acceptable. megyn: one of his top lieutenants lanny breuer, he came out in response to senator grassley and told senator -- told the congress that he had never seen -- he didn't remember seeing this key letter that was sent by justice to senator grassley earlier this year. he said i don't remember whether i have ever seen it. then he doubled down on that testimony in written form answering if questions saying i

don't recall seeing that. then the document dump that came out last friday established he received four drafts of that letter. he praised the person underneath him who was involved in writing that letter saying great job. and it was shown that lanny breuer sent a coppy of that draft lower his own personal gmail account prior to with it was sent. now senator grassley is demanding lanny breuer be fired. do you agree? >> i do agree with this. president obama back in march promised the american people they would get to the bottom of this and hold somebody accountable. so far you have atf agents who have been reassigned. but nobody has been fired. the senior most people within the department of justice under eric holder's direct supervision. one of them was promoted. other people potentially got bonuses and rewards. but someone seems to get held

accountable. the southern general testified we'll suffer the consequences of death in the united states and mexico for years to come. megyn: has eric holder or anybody sat justice told you who signed off on this operation? how high did it go? who is the highest ranking official down to the lowest ranking official? who signed off on this program and knew it was happening? >> the attorney general said he still didn't know it's more than a year later and he claims he did not know it's a stunning answer. how the president puts up with this i don't know. we in congress aren't going put up with it. there has been to accountsability, nobody has been fired. that many the problem. megyn: thank you for coming on. we appreciate it. top military officials confirming video coming out of rwanda is real. they absolutely do have our top secret spy plane.

but wait until you hear what happened back in washington whenword came down about a chance to get it back. one of the deadliest attacks on a military base in the history of america's armed forces. two years after the fort hood massacre. some lawmakers say the obama administration cities trying to reclass fight as quote workplace violence. my doctor told me calcium is best absorbed in small continuous amounts. only one calcium supplement does that in one daily dose. citracal slow release... continuously releases calcium plus d for the efficient absorption my body needs. citracal.

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low fat and five grams of sugars. see? he's a good egg. [ major nutrition ] new ensure hh protein. ensure! nutrition in charge! megyn: i want to show you this video we just got in from the scene at virginia tech. according to the latest updates two people have been fatally shot on the campus. one is a police officer and another is a victim whose identity they are not sharing with us. the virginia police have been deployed to take the lead on this investigation as opposed to the campus police and we are hearing the suspect who fled on foot is still at large. his whereabouts unknown.

there have been conflicting reports on this. earlier they said someone surrendered at the performing arts building. then they said his description did not match that of the short. it appears they do not have the suspect in custody as far as we were last told and that person reman is as the large. the students and the campus remain in blockdown. more as we get it. a fox news alert out of iran. a seen yoimplet s. official speaking with fox news confirming video broadcast on iranian state tv is in fact the missing top secret cia drone. it remains intact despite iran's claims of shooting it out of the sky. the pentagon is concerned that iran will turn it over to russia or china. the pentagon came up with a plan to recontroversy the drone, but

president obama turned them down for fear of sparking a war with iran. >> reporter: the drone being shown on iranian state television is the missing sentinel drone that went missing last thursday. officials told fox news they did expect the drone was intact when it went down. that's the reason why they came up with three separate plans to either recontroversy or destroy the drone which had lost contact with its operator due to a mechanical malfunction. the president as commander-in-chief was presented with a mix of plans to send u.s. command doughs in to retrieve aircraft or destroy it. u.s. officials are not surprised that the droins intact because wait super secret stealth aircraft is designed, it's a very stable platform it does not

come crashing down like a fighter jet. it was parts of a long-term effort being run out of afghanistan's western air base. it flies at 50,000 pete and -- 50,000 feet. it's being described as a big loss it's a $million aircraft made by lockheed march turn. we only learned about the certain mall two years ago when the first images of it emerged from afghanistan. it was used to essentially spy on the bin laden compound and is being described as a big loss to us. megyn: a former green beret joins us to talk about forward hood as we get reports the obama administration wanted to call that attack a case of workplace violence. but is that true?

former new jersey governor jon corzine explaining what happened to more than a billion dollars missing from mf global. why hasn't he been charged with anything yet, and will he likely face charges? "kelly's court" back in scetion just ahead. >> i was stunned when i was told sunday october 30, 2011 that mf could not count for many hundreds of millions of dollars in client money. i remain deeply concerned about the impact that the unreckon sield and frozen funds have on mf global's customers and others. i simply do not know where the money is or why the accounts have not been reconciled to date.

megyn: police with guns drawn were seen running towards the california us on virginia tech. it is confirmed two people have been killed. they told us what happened is they believe a traffic stop was at beginning of this. a police officer pulled over someone for a traffic stop and that police officer was shot and killed. that's according to a news release from the school. but the cop pulled somebody over. that cop was shot and killed. we spoke with an eyewitness who saw the police officer on the ground moments after. then they say the shooter ran

towards a parking lot on campus where a second person was found dead in that parking lot. there have been reports that that was a student. we have not independently confirmed that nor do we know either person's identity. we are told thev state police will be taking over the investigation. they are telling the students to remain in lockdown to stay indoors to lock their doors. and we are hearing that the lockdown has spread to schools in montgomery county in and around blacksburg, virginia where this happened. the suspect has been described in relatively great detail by the school. white male, gray sweat pants, a maroon hoodie, a backpack. the students there exercising the utmost of caution. but we do not know if someone has been apprehend or not. there are conflicting reports from the student newspaper suggesting someone has been apprehend, someone quote surrendered wearing jeans, which

is not the description of the suspect and a gray shirt which is also not the description of the suspects. they say that person surrendered over at the performing arts building. but there is a question about why that person would be surrendering and whether it had anything to do with the death of two people. the students continue to wonder what is going on on a campus that has already seen far more than its share of violence. of course, back in april of 2007 our viewers will remember the massacre that took place at the hands of a were -- hands of a deranged student named seung-hui cho. he killed a young woman and young man. then went back to his own dorm room. reloaded. took a bunch of videotape, sent them out to the media at post

office. was seen dumping something in a campus lake which they believe was a hard drive, that was never recovered. then went over to anothe campus building and murdered 30 people. putting chains on the doors. leaving a note suggest he had a bomb if anybody came inside. and the campus police were criticized for not alerting the students on campus about that first shooting so they could have protected themselves in those two hours and about taking what some said was an excessively long time to get into that second building where the massacre was underway. here we are years later and virginia tech has had a couple lockdowns since that 2011 incident so they have gone through this before in incidents that were not drills, incidents that were perceived to be real threats at the time. they have hones this down to what you could see you is a science. how they get the alerts out to students. how much detail needs to be

included in those alerts. and so far they have received three today from the campus officials. one reporting gunshots, alerting people to stay inside. one describing the suspect as i have described to you moments ago, saying he was seen on foot towards one of the bitled on campus, and one saying the suspect remains at large. a police officer has been shot as has a potential second victim. we do not know where the location of this suspect is. and whether they believe the initial person who surrendered had anything to do with the shootings as we are watching and hearing about today. we'll bring you much more on this just as soon as we get it from students and campus officials speak on this matter today. stay tuned right here on "america live" we'll have the latest for you. the "operation fast & furious" gun running scandal got national attention after border patrol agent brian terry was gunned down on ought job and one of the

weapons found at scene was traced back to an atf operation that let guns walk. in three minutes, what could be next -- what should be next for attorney general eric holder and top doj officials. >> brian terry is dead today in my opinion because of this failed program. but even today we will not hear justice taking responsibility. they will instead talk about the two guns that were recovered yes they were from "operation fast & furious" but ballistics are inconclusive. this justice department is not looking for a third weapon. they are not look for who killed brian terry. are you receiving a payout from a legal settlement or annuity over 10 or even 20 years? call imperial structured settlements. the experts at imperial can convert your long-term payout into a lump sum of cash today. do you have an irregular heartbeat called atrial fibrillation, or afib,

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megyn: new fallout from operation fast and furious. the botches gun trafficking scheme where united states weapons wounds up in the hands of drug cartels in mexico. lawmakers look for heads to roll over mistakes that have been made. one congressman saying impeachment is an option if it turns out eric holder doesn't clean up this mess and quickly. things got heated. take a listen. >> let me make something very clear in response to an assertion you made or hinted at. nobody in the justice department has lied.

>> how was the letter withdrawn. >> there was information in there that was inaccurate. >> tell me what's the difference between lying and misleading congress in this context. >> well, if you want to have this legal conversation it has to do with your states of mind and whether you had the requisite intend to come up with something that could be considered perjury or a lie. the information that was provided in that february 4 letter was gleaned by the people who drafted the letter after they interact with people who they thought were in the best position to have the information. megyn: joining me a form legal counsel for the house judiciary committee. thank you both for being here. i'm happy to have you here. i think all three us here can agree that eric holder states it exactly right. that is the difference. you can issue a letter that is

inaccurate without having lied be behind it. you can have inadequate investigation. you can have people lying to you at the letter writer and right now we don't know what the truth is behind that letter. but the question i have for you guys is should he know by now? if justice is in a position of having to withdraw this letter, should eric holder know whether -- who lied to whom, who should be held responsibility and how it got to the point where the department of justice was sending a grossly inaccurate letter to a top u.s. senator on such scene important case? >> i think despite the testimony today the attorney general does know. at least at the minimum his staff including his principal deputy relied on inaccurate information. that information was provided to the united states congress. that information 10 months later was deemed to be inract.

so inaccurate the formal letter had to be withdrawn. i went back over some of the tapes from earlier testimony. no one in the department of justice is acknowledging that they reviewed this letter that was put in back in september, the september 4 letter. megyn: that letter says atf doesn't let guns walk. and that's all not true as it turns out. >> it was a denial of everything that senator grassley put forward. here is the problem. you have the deputy chief of the criminal division, the cheever of the criminal division. lanny pure who says he doesn't know if he reviewed the letter. yet the emails as part of the document dumb show he forward that letter to his own account three different times. he praise the author of the letter. someone has to take

accountability. as the a minimum the deputy attorney general of the united states. i think eric holder is running out of excuses. enough is enough. when they went through that letter december 2, the reality is it shows the lack of governance and leadership within the department of justice and it's starting to reach a fever pitch. megyn: julian you have been good about defending the administration on this. what do you make about the latest developments and in particular senator grassley's latest call on this. he has been reluctant to call for anyone, resignation. he did come out and say this guy breuer needs to go. >> this is a program that started under the bush administration. this is a program the obama administration stopped. holder. he was the first to remove the people responsible for the guns running. i think in terms of the issue relating to the letter, you

know, what happened is this letter was sent in early february of 2011 on an event that happened several weeks earlier. this was -- the guns running operation was done by the field offices in phoenix. it's typical for the folks in washington not to have all the details. it may be a fair criticism that the letter should not have been sent before washington had all the details about what happened. but i don't think there was any indication lanny breuer or anybody inside the attorney general's office was intentionally trying to mislead the congress. i think you are equitabling at this point in between the difference as to how much information the justice department and washington should have known about a matter that was very complicated with lots of sketchy details. megyn: let me ask you this, jay. >> you can't say that now. they put in a document, 10

months later they come back and say it's inaccurate. there is no excuse for 10 months. if you want to take the excuse of it was a few weeks after the incident, the letter had inacross a is. 10 months later you have the u.s. attorney in arizona asking for more of a defense. you have the internal memorandum from the departments of justice where some are saying we are overstating the situation. and you are the cheever of the criminal division not remembering if he saw this letter though he forward it to his own email three times and parades the author. i'm sorry, someone has to take responsibility. megyn: speak to lanny breuer. can you defend lanny breuer? so far he hasn't had that. >> full discloses -- full disclosure lanny is a friend of mine. he acknowledged it was a gun

running operation that started under the bush administration. with respect to lanny breuer. he has thousands of letters, ems crossing his desk. he sent an email saying good job, guys. megyn: he forward it to his personal gmail. >> i don't think that's a big issue. megyn: why do you do that in government service. >> i think people make copies of stuff they want to look at later for all kinds of reasons. lanny may have said good job, guys, to the people who wrote the letter, not appreciating the details. this was february of twefer. only several weeks after this tragedy occurred with brian terry. >> nobody at the departments of justice is taking responsibility for this. no one has said wrote this letter, read this letter. and it was a mistake. they are saying now it's

inaccurate. megyn: i want to get julians take on this before we go. here is way want to ask you. you said that eric holder read moved the people responsible. no one has been fired. the u.s. attorney out in arizona resigned. other than him everyone has a federally funded taxpayer job. should somebody be fired? >> i think somebody should, but i think the fact that nobody has may be appropriate for the following reasons. eric holder called for an independent investigation. the independent investigation has not been completed yet. i think mistakes were made. this was a plan started under the bush administration. megyn: we don't -- megyn: i have got to go, julian and jay, thank you both so much. new details coming in from

virginia tech. we tracked down a student in a dorm room overlooking the part of campus where this shooting took place. in three minutes we'll ask that young man what is going on now as the police apparently are still desperately searching fear suspect. just one phillips' colon health probiotic cap a day helps defends against occasional constipation, diarrhea, gas and bloating. with the strains of good bacteria to help balance your colon. you had me at "probiotic." [ female announcer ] phillips' colon health. ♪ [ gong ] strawberry banana! [ male announcer ] for a smoothie with real fruit plus veggie nutrition new v8 v-fusion smoothie. could've had a v8. most powerful trading app ? total access - to everything. from idea to research to trade. including financials, indicators and real-time streaming quotes.

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megyn: fox news alert. new details about the situation on the campus of virginia tech. the university says it has investigated reports a new round of gunshots on the campus and they found no evidence of that. we also learned the atf has sent a special response team to virginia tech to work with the local authorities. they have been through this before. they say they are familiar with the university, the campus and buildings and they established

protocols on how to address these situation. on the phone with myself a student in a dorm next to the parking lots where one of the shootings took place. myles, tell us what you saw earlier today. >> i haven't actually seen anything yet. but i have been getting a lot of reports vi sarks twitter and text and through v.t. aslerts trying to keep us updated. >> i got a v.t. alert telling me there had been a shooting in the parking lot so i came back up to my dorm and i have been here. megyn: the latest information we have was at 2:20 p.m. saying the suspect's status remains unknown.

telling the students, stay where you are and secure your surroundings. was that the latest alert you got as well? >> yes, ma'am. megyn: describe the situation inside the dorm right now. >> it's been a little chaotic. me and my roommate, we have been getting a lot of texts and, you know, twitter from our friend asking what's going on, asking if we are okay. we don't have a lot on what's happening right now. megyn: have you heard from your friend who may have been an eyewitness to the events today? >> no, i haven't. i saw one person on twitter who is on the other side of my dorm. she says you can see a lot of the cop cars in the parking lot. megyn: there is a heavily armed presence on campus with various authorities. miles, our information is the

same as yours. the latest information, stay where you are, secure your surroundings. we hope you and your professors and faculty are well. former new jersey governor jon corzine explaining what happened to more than a billion dollars missing from mf global. explaining by saying i have no idea.

megyn: "kelly's court" is back in session. on the docket, a former governor and senator forced to testify about a billion dollar scandal. once considered a candidate for secretary of the treasury. at helm of his investment firm mf global as that company went

bankrupt. lawmakers are demanding to know what happened to more than a billion dollars of investors' money which has seemingly disappeared. so far no one has been charged with anything. here is in corzine earlier today. >> i was stunned which was told on sunday, october 30, 2011 that mf global could not account for many hundreds of millions of dollars of client money. i remain deeply concerned about the impact of the unreconciled and frozen fund have on mf global's customers and others. i simply do not know where the money is or why the accounts have not been reconciled to date. megyn: joining me now mark eiglarsh and former prosecutor and defense attorney arthur aidala. what a mess. the money is missing. he says -- i don't know. i don't know. you tell me, mark.

what defense lawyer advised him to do that? >> i don't know, megyn. $1.2 billion goes missing an chooses a rear to the that would be acceptable for my 5-year-old when i ask where your shoes are? unacceptable. presumption is he has done something wrong. you add to that the allegation that he made numerous misstatements about the strength of the company. on balance sheets they are hiding european debt. to some reporters they didn't have it on the sheets at all. there is a lot going on here. megyn: they wanted to get people into vest in this fund. >> sure. megyn: and to do that the allegation is that they didn't list european debt that they were heavily invested in on their balance sheet. european death is crumbling.

to lure people in the allegation is they said foreget, no, european debt, we don't invest in that. corzine will be in trouble personally if that turns out to be true, because you have got to sign personally as a ceo thanks to a law corzine wrote when he was a u.s. senator. >> 2002. not only is what you said accurate. and what leads to criminal prosecution is if they took customers' funds who did not sign on to any of those things and used it to keep the business afloat or keep other people's investments anorth which is an internal ponzi scheme or using escrow monies to operate my law firm. that's per se -- megyn: where would they have goh gotten that money? were there two end of the business? >> you say use this money to buy

g.e. stork and i use to it pay mark eiglarsh's salary for this week because we are short, then they don't know -- $1.2 billion? megyn: that sound close to the madoff scandal. even though it looks bad. that doesn't necessarily mean jon corzine knew anything. could it have been somebody underneath him was doing something and he generally didn't know. >> that's my defense if dwhriem defending him. he's a fancy pants out doing important stuff. he don't know everyone under him is incompetent or committing fraud. the problem is the corporate fraud law he helped create in 2002, he has some sign off that the financials are accurate which means he has to investigate that they are accurate and they weren't allegedly. megyn: there is apparently this

rule proposed last year that would have restrict how firms like his handle and invest customers' money and he corzine went and personally reportedly lobbied against that. he didn't want to be restricted the how he could invest his customers' money. who did he lobby? a form colleague of his own at goldman sachs. the rule was never passed. >> this is huge, by the way. a senator hasn't testified before congress, a former senator, in 100 years. he, the captains of the ship. he's the captains of the titantic. he can't say i didn't know when i went to sleep that the person at the helm was incompetent and would crash into an iceberg. megyn: would you advise him not to make that statement? >> absolutely. megyn: coming up, more on the

latest on virginia tech. we'll be right back after this break.