you know and there were rumors that he was a big pot smoker and you know he was out playing golf you know thursday through sunday all summer long while the fires were kind of burning around the firm and these hedge fund so you know he it really became apparent by the fall of zero seven you know about five months before the firm collapse that you know he really wasn't down and dirty with the business and beyond that that the subprime mortgage business he he really didn't have a good clue about what was happening in that business and it later came out that really nobody did you know the management style of bear stearns was very siloed so different parts of the company really didn't have a clue what other parts of the company were doing and you know at the end you know everybody kind of thought the guys at the top had some sort of bird's eye view. and in fact they didn't buy it but beyond that the firm was it was effectively mortgaging itself and refinancing that mortgage every day for many years in the commercial paper market and the reason they did that was because it was it was a lot cheaper to do than taking on long term debt so you know there were

a lot of things that were done to maximize profits you know for the executives at the firm and certainly jimmy cayne led that and at the end it ultimately going to them how much did that j.p. morgan think out bear stearns for what was that deal ultimately consummated that well it was ultimately consummated at about ten bucks a share whatever originally had come out in the number everybody remembers is that on that monday march seventeenth st patrick's day the public learned that the company was going to be sold for two dollars per share and what happened after that was that. which effectively meant that j.p. morgan was going to buy this firm for barely more money than in the firm's headquarters building on madison avenue was worth what happened was that there was a shareholder revolt and at one point jimmy cayne was exploring the possibility of actually blowing up the firm and taking it into bankruptcy and and just effectively said you know i'm going to take everybody down with me so after that revolt it was clear to jamie dimon and everybody in j.p. morgan that there was something that was going to have to there's some kind of contractual problems as. well that left morgan exposed so at the end of the day the

firm was picked up for ten dollars a share and they got that the old going in may a couple of months later you know so. by any stretch comparison it was one of the great steals of the buy on wall street probably in history right and then of course j.p. morgan after acquiring those assets for less than pennies on the dollar they turned around and got a multi hundred billion dollars bailout fund that american taxpayer so fantastic for jamie diamond again another legendary scam star clarify some of the points there going back to nine hundred ninety nine and the long time capital management scandal that has gone collapsed and wall street came together to balad out with this huge multi-billion dollar bailout loan firm did not participate and there was a stigma attached to that firm was that bear stearns or lehmann it was actually both bear lehman only pick their every firm on the street was told by the president of the new york fed that they all had to kick in three hundred million dollars per

to bail out long-term capital management what ultimately happened was that lehman only kicked in one hundred million and bear pretty much told the fed to take a hike jimmy cayne basically saw bear stearns as really a vendor to long term capital they cleared all of long term capital trades and you know he didn't see why he needed to take in money to save this firm and in fact of course he didn't you know and that's really when when long term capital collapsed in ninety eight that was really when the term too big to fail was coined and it certainly set off a huge moral hazard problem for wall street we saw it rear its head again and overweight on a massive scale and so you know there are certainly a lot of parallels between what happened in two thousand and eight and what happened on a much smaller scale in one thousand nine hundred eight with long term capital management all right so let's talk about what's happening now in the criminal proceedings the lawsuits that have been launched against best turns j.p. morgan sensed a collapse terry bull who leaves. well in the show she's been

a guest on times a report you worked on details that are leading to a lawsuit can you give us some details and updates on that i worked with after terri who's just been a huge fan of the film for since day one and done a lot of really great reporting on this subject surrounding bear stearns and these other banks after she wrote an initial article in the atlantic i was contacted by a law firm who is bringing an action on behalf of some of the model line insurers the biggest thing that's just come out is the f h f a's lawsuit civil suit which was released this past friday which details actually individual defendants at bear stearns all of whom were running their mortgage operations and are now in very high paying jobs at other firms tom moran oh at ally bank jeffrey fertiliser at goldman sachs these guys have had landed and big jobs at other places so and although this is a civil suit not a criminal procedure proceeding the word i hear is that based on the outcome of these proceedings you know some indictments are being bandied about and talked

about so you know i think that after you know certainly the justice department lost the case against. him and his co-manager of the headphones a pair stearns where they were acquitted on nine counts i think they've they've really been going to school on how exactly to prosecute these people for the malfeasance that they participated in and you know i'm hopeful that some of these people you know pay for what they did because certainly the last e-mail documentation as well as i witness information apparently more than thirty whistleblowers have come out and some of these suits to describe the incredible level of fraud and malfeasance that was going on both on the factory floor at various mortgage operation really went all the way to the top all right we're going to leave it there and they were pinsky thanks so much for being on the kaiser report thanks for having me max all right that's going to do it for this edition of the kaiser report with a nice hazard and stacy herbert i will thank my guest next for a bit if you want to send me an e-mail please do so our cars report at r t t v dot

are you in the next time this is maxed out or saying.

shortlived jubilation and widespread joy over the fall of gadhafi in libya some claim they are now being intimidated by the rebel freedom fighters. cashing in on incarceration of u.s. private jails are used of lobbying for heavy jail sentences to make more money from prisoners. and dead zone for tourists ukraine debates whether a ban on trips to the contaminated area around her novel should be lifted following allegations they were providing unhealthy profits to officials.

who are watching r t coming to you live from moscow i'm marina joshie welcome to the program amnesty international has called the media's new of sorties to prevent human rights abuses there are allegations of violations committed by both rebels and colonel gadhafi is troops most of the country is now under rebel control with only a few pockets of khadafi the oil list still fighting but some people in the capital say the only fruits of the revolution they are seeing are uncertainty and fear as artie's or even often our reports. let. it off you free tripoli just can't stop chanting to celebrate the birth of you leave. all reminders of recently overthrown dictatorship are suppressed what used to bring nightmares to some for decades is now a cause for larger problems i should shoot for his curly hair we call him

shit because his hair is so long and he doesn't cut it it's ugly actually but some are not smiling believe in the post gadhafi freedom is nothing but the mirage ikram has been the rest of three times in the last two weeks rebels and tara gate is him and took his documents the reason the twenty seven year old copilot says is his family's ties with gadhafi his regime we cover his face and change his name in supposedly free libya this man is afraid of being thrown in jail again or even killed you can see a bug was about gadhafi but you can see a lot of blood was about rebels and about could be a national icon for what they are talking about democracy this is not the work of iran says libya didn't get rid of a dictatorship but only fell into another one of the rebels wrappings in a city where the gun has become a common accessory just like a cell phone and where one can only cross the town's numerous checkpoints with an

obligatory a large bar to the winners this is a reality not hard to believe. you know everybody we are happy we are freedom get there feels good run away this is not true believe me because they are free from all returned back to tripoli you see the same people same people same personalty they are supporting a revolution can bring much hope that was comes after news is often different. those who drove egypt's revolt this year were still on the streets this weekend seven months after toppling president mubarak and three apple like of progress on reforms he was future to still far from here the post gadhafi libyan capital has been the scene of euphoria with celebrate three gunfire and singing right here around the clock for more than a fortnight already like all parties however some believe they could be serious hangover after wards in the form of retribution and uncertainty as to how the

future a country will be governed. regional shots he tripoli libya. meanwhile there is growing concern in libya that arms seized after the fall of gadhafi could fall into the wrong hands brian johnson thomas a former u.n. experts told r.t. what needs to be done to stop the flow of weapons. old start off by illegally maybe it was illegal to do so but at some point the guns that cause the problems and have been diverted and because of libya the concerns you very much a lot of the rebels were in some fairly recently also regarded as being in league with al-qaeda in some cases so there are some ways to what they are doing but it's certainly the reception for their car carriage of america which would always a second interesting welcomes and let me go i want to get support for the revolution of any sort we're going to boost some of the individuals who are going

to one of the troubles that is the. new me where you can have a society where the good news is if it's good you will respect the rule of law a majority of gun crimes would not because people who want to hold an illegal weapon because they don't have any trust and someone else looking after them so in this the libyan transitional national council very quickly establish a trusted impartial independent police force and there's main cities project going circling there would be a temptation of people to keep guns for their own defense but not then resist temptation to use a gun for something which you shouldn't be used. and you can see the full interview with brian johnson thomas former u.n. expert on the arms trade later this hour here on arts. u.s. congress is considering president obama's four hundred forty seven billion dollar jobs bill to help america's ailing economy the country is looking at all possible

means to raise the cash it needs one idea being mooted to save money. it is a reduction in the number of people being kept behind bars however one group of people has a vested interest in keeping prisons as full as possible so it is more important i've found out. america's financial crisis has been something of an unsociable monster swallowing up millions of jobs homes and businesses throughout the nation yet amid this ongoing economic armageddon one industry has remained recession proof. private prisons. with more than two point three million people behind bars the united states trumps china russia and the rest of the world in both the number and percentage of people doing time where it falls short though it is being capable of containing such a large population it's a political dilemma turns cash cow for dozens of corporations creaming profits off

punishment private prisons make money out of incarceration the more people they lock up and the longer they keep them the more money they way so they have the same perverse incentive to expand our justice system and increase our number of people or our number of citizens working hard because it increases their profit margin. the profitability of private jails depends on the prison population continues to go up the rate of incarceration in the us has quadrupled since the eighty's when america's war on drugs are short in the three strikes policy which tries judges to mandatory minimum sentencing even for nonviolent offenders since the late eighty's and into the ninety's and now today we see a turn away from that rehabilitated model so across the country prison programming is cut rehabilitation is being cut there's less opportunities for education to gain work skills and instead there's just this drive towards isolation towards

punishment private prison companies are paid between forty five and one hundred thirty dollars a day per detainee rates for juveniles women and immigrants could be higher for all public prisons are accountable to the public private ones answer only to shareholders and are not subject to external scrutiny that means many private contractors face few consequences for the poor or even inhumane treatment of detainees we just see you know more and more isolation sensory deprivation and prisoners who literally never interact with human beings guards would come. into the facility there would be a sign out front with their stock price to let them know how the company was doing corrections corporation of america and geo group are the two largest private prison companies with combined revenues of two point nine billion dollars last year but critics say they've been using that financial clout to line their own pockets even

further encouraging politicians to keep going with the heavy handed sentencing program by launching an influential lobby campaign in the corridors of power are being and in order to influence public officials only a small horror of private prison industry effort. policy check and others include campaign donations so the companies make hundreds of thousands of dollars in donations to politicians nationwide both on the federal and state levels with most states and the federal government currently operating under record deficits and budget cuts private prison companies are pitching their facilities as lower cost alternatives and while most americans continue struggling for in this economic downturn now's incarceration may grow even more profitable. r.t. new york. and so have three of us our here in our t.v. extremes of tourism daredevils crazy person an experience of

a post-apocalyptic world seek a way inside the exclusion zone around the turn novel nuclear plant in ukraine. this is the sign that will welcome iran's president in new york next week a billboard in times square accuses iran of being now live as with any job has for the u.n. general saying. it's time for the greek economy with more speculation it's closer to follow the greek finance minister is set for talks with his german counterpart after some officials in berlin suggested athens could be forced out of the single currency and financial analyst edward harrison says any default carried the real risk of contagion. that is the. look this is a work we realize that there's no way they're going to be able to repay and do the austerity we're going to have to take some haircuts that is we have to. get

a default we're going to have some sort of program to deal with that in an orderly and structural there's going to be losses and we know that those losses are going to mean that when we capitalized banks. like germany and france and also the greek banks themselves you know there might be a flat type of attitude you know if we cap was your bag that means you probably have to flog some of them off and sell them to foreigners things of that nature there's always going to be some recrimination. but at the end of the day once these debts are unsustainable are written off i think that's a positive thing if greece defaults that everyone says ok doug says the policy. the way greece the other a special case. good to see or they could. fall to what about ireland what about portugal what about spain and italy they look like

greece maybe they'll default to. get out of those countries and then you know the same sort of scenario play out there that just played out in greece. adventurous travelers are waiting to see if they will ever be admitted to one of the globe's most surreal tourist sites again zone around for an album nuclear plant in ukraine twenty five years after the worst ever a time disaster trips to the area have been holt over allegations they are illegal artie's next year she asked has the details of these scores were once heavily affected by nuclear radiation now the radiator for a different reason or have an exhibition in key of dedicated to the plea rubble of the one nine hundred eighty six chernobyl fallout over the years the chernobyl new . i mean ukraine's capital kiev has become one of the top tourist attractions especially in april this year when the world markets twenty fifth anniversary of the disaster but for those craving for the firsthand post-apocalyptic experience

looking at the exhibition here has not been enough. and there is an adventurous alternative to contaminated zone around should not bill itself over the past decades tourists have been floor can hear more than ten thousand of them each year that's why forbes magazine named the dead zone one of the world's most exotic two respects the nation's. aleksandr a former resident of the ghost town of prepared has been organizing these tours for several years he told us that visitors are always fascinated by what they see although all their motivations for making the trip have always varied. ok. you people have different reasons for the summer to see what an apocalypse could look like for a predator someone to feel the history of who has some it's their childhood like the atmosphere of the soviet union has been preserved but for me it's more

important not why they come here i mean it's what effect it has on them. but since june that this radioactive tourism has been suspended the prosecutor general's office conducted checks and ruled that emergencies ministry had broken the law these trips as well as making an unhealthy profit every tourist to the zone has been playing around a hundred u.s. dollars to do so equating to a multi-million dollar revenue every year what. we were to the ministry to inform the government of every dollar earned by these trips and we know that a lot of money is limited because all we have no idea. why not with the money into the budget and use it to solve the problems. that the ministry is defined it says it stuck by the law it claims these troops are a vital way of educating the world on how to avoid such disasters and says they could help fund new industrial projects on contaminated land the emergencies ministry has now filed a lawsuit in

a bid to resume tours through the contaminated zone and the court is expected to start hearings in that september ukraine's thirty kilometer nuclear wasteland will remain closed to the public until then with the debate remains very much open. the artsy reporting from q. and should not be in ukraine. for more exclusive stories and video be sure to check out our website r.t. dot com here's what's on the line right now. it's a prime minister david cameron's visit to russia could herald a revamp of relations between the two countries had to our side more in debt. analysis from. canada russia medication satellites thought to be lost in space california after forty waves of radio silence warned r.t. dot com plus check out all our best players on our you tube channel.

if. any is easy. to complete. download the official ulti obligation show on the phone called talk from the shops to. launch all she is on the go. video. all she's mind comes and says features now an apology i want to. push him on the call to calm. iran's first nuclear power plant is now in stream after being officially launched the russian built facilities the only such station

in the entire middle east will share is currently running at forty percent capacity and won't reach full power until december russia will continue to provide help and fuel for the plant and iran will stand span fuel back to russia to ease tension in the west over any uranium enrichment program the u.s. and the e.u. have long been concerned the country is building a nuclear bomb like to iran insists its ambitions are strictly peaceful. researcher at the school of oriental and african studies at the university of london believes iran has the right to peaceful nuclear energy just like any other developed nation . we have now a decades long standoff between iran and the west. over the iranian nuclear program and if we listen to the most authoritative source when it comes to analyzing the iranian nuclear program which is the international atomic energy agency and if we read their reports we see that there is no evidence for any

weaponization and also this is. numerous. numerous occasions the us intelligence services and very recently so as well so actually this has been very hyped up. the nuclear issue for political reasons in order to be able to garner support to put pressure on iran for achieving other political and so i think the nuclear issue in iran has is still being hyped. loses much credibility against the evidence that we have so of the world has to face that iran as other developed countries has a nuclear program which is peaceful according. to all the evidence that we have. well there will be no war welcome for running president mahmoud ahmadinejad in new york when he visits for the u.n. general assembly a massive billboard in times square accuses iran of allying with the he was

a poster was put out by the united ganske nuclear iran group which opposes to iran's nuclear plants and also once hotels to refuse to accommodate a good job but i want you and of the in the pan initiative think tank told r.t. that attacking iran risks increasing its desire for nuclear weapons if you remember after all nine eleven iran helped the united states apprehensive malka people and provided intelligence on the because remember. islamised government is different than the al qaeda which is sunni and the iranian government is shia and the. is hostile to the billboard furler demonizes iran so i think the problem with demonization as we've seen in the case of saddam hussein and moammar qaddafi is that the united states then seems to take out those leaders after a while and if you've got a republican administration in beat obama next year in the elections by two

thousand and thirteen we could hear the drumbeat for attacking iran which of course i think would be disastrous you have to put yourself in their shoes they do have legitimate security fears but i think you had to take them into account and you have to do everything that you can not to demonize them because that in turn creates pressures for attacking them later on this coercive approach merely makes iran want to have weapons more ron sees that iraq and libya who gave up their nuclear weapons programs they got invaded or attacked. what you are to us now take a look at some other stories from around the world turkey's prime minister has described israel's raid on a gaza of bountiful till last year as a cause for war but said he's country refrain from taking action ankara did however expel the israeli ambassador and cut military and trade ties with the jewish state after it refused to apologize for killing nine turks in the operation and ahead of

a trip to egypt turkey's leader a war and israel faces growing isolation in the region relations between the jersey state and cairo are strained to after ryder's ransacked the israeli embassy. a massive fuel pipeline and lotion and khania has killed at least seventy five people in severely injured over one hundred the blasts created a giant fireball which engulfed a heavily populated slum nearby the kenyan red cross assisted in search and rescue operations are scores of severely burned victims a lot of hospitals in the explosion was most likely caused by attempts to siphon fuel from the pipeline. an iraqi army patrol has found twenty two murdered shia pilgrims in the country's western anbar province the victims were headed to a shrine in syria when their bus was stopped by armed gunmen they were taken to a remote desert area and.