calls that got used in a illegitimate manner and they're no longer on the balance sheet of m.f. global they're going to have to sue some people and they may have to put some handcuffs on people to get them to return the value of what they took at that point ok now to follow up on the point the m.f. global trustees have said this week that m.f. global did all those records cash movements isn't that outright fraud absolutely and i think it's disingenuous to say that in the last days things were a little chaotic and crazy of course they didn't record things but the difference is did they not record transactions that were legitimate and they're just a little behind on their bookkeeping or do they actually do something that was under the table i believe that you can't have a billion to gone unless they did something that was under the table again with the hope that they could sell the company and be able to put all the money back in time before anyone knew it was missing francine when i was working on last range of

compliance officer the guy who is supposed to oversee the day to day margin calls and and balancing of the books he was a guy we bribed routinely to look the other way this is similar to this this is a similar situation basically where the the office to compliance guy was slipped a little a few bucks and presto change and suddenly the phones are vaporizes that's kind of what we're talking about well i think if you watched him testify mr stockman last week before congress you would see that you probably didn't have to pay him off he looked a little oblivious to the whole thing and he admitted more than once that he was either out to lunch out on vacation or just completely out of it not invited to meetings not included in the discussions at a senior level i mean there's a there's a theory or a word for this is called plausible deniability the less people they tell the less people they have to worry about that. might slip up and say the wrong thing and

blow the whole deal i think that the mesh nations were contained in a very limited group of people perhaps the two or three people at the top and all these other folks that are being dragged through the mud in the operations of the back office some of the names that were dropped at previous hearings those people were just doing their job i really don't believe that they were part of the criminal or the illegitimate activity that took place i think that they were just there and did what they were told to do ok now who specifically are the owners involved in the m.f. global case and on there any conflicts of interest there the auditors are pricewaterhouse coopers and they have a very long history with some of global because they were the auditors and they still are the auditors of the man of man financial which is the company that spun off. a global into a public company in two thousand and seven peter you see also was the ones that

created the original internal control procedures and sarbanes oxley procedures way back when the company was called refco. pete of u.c. has an enormous number of conflicts with this particular issue and they're not being called to account they haven't yet been called to testify even though the rating agencies have they know where the company stood from a segregated assets perspective at the end to a report period in march at the time when the bonds were issued in august they had to file special reports with the a c c they had to file special reports with the c. f.t.c. and those reports are no longer on file at the c.c. or the c f t c so we as a public or the investors of the customers can look and see what did you see say or do about any kind of weakness in controls at any point in time in the immediate future or media past now one name that keeps popping up all the time is j.p. morgan. what was their role in all of this well interestingly enough peter b. c.

also audits j.p. morgan and you have peter obviously also auditing the law firm that the trustee get is works for so you have a lot of a vested interest in everybody keeping the noise down and in fact j.p. morgan was the primary banker to m.f. global and j.p. morgan was also the trustee on the bond issue of global had back in august my strong opinion is that no one is willing to say that the money was actually taken or stolen because that means that all of these folks have to acting particular the trustee and they're going to be suing firms like j.p. morgan and peter have you seen like they've done in similar circumstances such as refco or any other bankruptcy new century some of the other bankruptcies that had very strong pointers to these third parties like the banks the investment banks the

law firms and the accounting firms who allowed criminal activity to take place the need to look the other way or potentially help them along the way and the reports suggest that j.p. morgan in the bankruptcy was junior to the customers in terms of claims but somehow that manipulated the regulations to become senior to the customers and in fact stole money from customers some describe what events that took place is that a fair characterization there is a lot a lot of concern about how the bankruptcy was actually structured that it was a forced bankruptcy by supposed securities investor protection or core corp that put. the wrong people as a priority and that it would have been done as a chapter seven and then they would have had the customers put first my personal belief is that this is really sort of peripheral to the fundamental issue if there was. money missing it really wouldn't matter how the bankruptcy was structured

because you wouldn't have to be as concerned about customers. having to eat the loss that's not occurred too often however it has happened before and some of the comments that have been made in certain testimony that oh customer assets have never been taken this is never happened before we never had to deal with it is not necessarily true it's just that these things are settled quietly and they're settled. in ways such that we don't see who were the real culprits but there's plenty of examples of people taking customer assets the sentinel case which is one that's been mentioned quite a bit and there was one about ten years back called griffith trading and nobody talks about that because everything is under seal right francis mckenna you mentioned rev como a couple of times and of course going back to two thousand and seven the rev co situation blew up it was a huge red flag at the time in terms of coming global

financial credit and market collapse but nobody did anything at the time but could you give us a little insight into how rev co situation relates to the m.f. global well refco is sort of the genesis of m.f. global growth co is the futures firm that became m f global after it was sort of washed through man financial but refco is you alluded to was a big scandal a big fraud a bankruptcy people went to jail people were sued in that litigation is still going on bankers lawyers and accounting firms were sued but they fight it because as soon as you have executives that have actually done something wrong and that have been convicted of it everybody else just claims that they were duped and that's the most common defense of this the defense that probably the accounting firms lawyers or anybody else that was either standing on the sidelines or. helping create documents

or support this effort at m.f. global will probably claim they didn't know or they were fooled or they had something put in front of them that they didn't really understand refco also had something very specific occur that helped them along it had a bankruptcy examiner the trustee hired a specific attorney to go through and do the investigation here at m.f. global we have a do it yourself investigation this turned into a cluster shmuck between the d.o.j. the c. f.t.c. to some extent the c.m.e. although they've been sort of put on the sidelines and you don't have anybody really with a completely independent or objective view gathering all the facts taking interviews and depositions you have a lot of competing interests and therefore the possibility that somebody is going to keep something under the rug it will never really know the true story given everybody's willingness to defend each other and keep the other out of trouble all

right finally junk or sign of m.f. global he claimed in front of congress that he had no idea where this money went do you believe him and that statement francine mckenna absolutely not and i think that he was probably instrumental to do the kind of deal they did to try to keep the company alive because i think that that was the goal of course dion ablow and his consider larry ferber to keep the company alive they had to have a go to person or a go to for somebody to help them through this process and those kinds of connections come through long term relationships i suspect that when we find out who benefited from this situation we're going to find somebody very close to course i knew or to the goldman sachs ok love to have you back on the road sign them thanks so much for being on the kinds report francine mckenna thank you all right and that's going to do it for this edition of the khans a report was made. ask iser and stacy herbert our time i guess francine mccann a if

want to send an email please do so i kaiser report r t t v dot ru until next time x. had a saying by. a. egypt's

streets and squares are alive with running crowds once again a year after president mubarak was forced from power. people here are calling the military council to step down immediately saying they're blocking reforms in the country more from tahrir square just ahead. the greek lawmakers pander to brussels with more cuts in exchange for bailout cash while people vent their frustration on the streets of athens also. europeans demand internet freedom no censorship speaking out against the global and . governments want to get live reaction on that story from london shortly here to.

international news in coming live from moscow this is r.t. with twenty four hours a day egyptians staging a general strike in a day of civil disobedience to mark the first anniversary of the toppling of former leader hosni mubarak calling for the military rulers to step down immediately excusing them of hindering reform. the reports from the iconic turn here square. if you ask those people they will tell you that really nothing has really sleestak in the years since the bar has been ousted as a matter of fact there is saying that things have gotten worse because now they have to do with the military council the scouts and head of the country's government right now with forces him to step down we're saying that they're going forth with democratic forms. but most people here believe that is not the case and

that is why they're calling for this massive act of civil disobedience the people who are at the at the source of this call are the egypt's revolution three alliance which is comprised of more than fifty political groups six of them six of them are the most probably revolutionary groups in the country a lot of them are university students for whom it is the first day of the semester and they're staging sit ins and walk outs they're not going to lectures they're not going to classes they're boycotting exams they're saying that they want to see some real changes towards democracy in the country which they haven't seen yet they're also calling on workers for massive strikes to go on indefinitely until the military council steps down but a lot of the parties that have made it into the parliament. during the recent elections are actually not supporting the strike primarily or we should know it's the muslim brotherhood who are saying that these that this these calls for

a massive strike are actually destructive to the country because that will only plug egypt into further poverty and disarray also the religious leaders in the country are not supporting the strike as well but students the young people who work behind this site really should along with the workers who wanted to see some real differences there are saying that things must be chasing mediately more on why it's absence are going to strike here's my colleague mary snow. around a thousand killed at least six thousand injured and even more still missing egypt's people have paid a high price to leave in a new country but despite all the sacrifices the shadow of the old regime still lose launch during mubarak thirty years of mubarak's rule to meet the number of people try them under military tribunals where one to two thousand now you know within about ten months or eleven months we have twelve thousand which is of course a humongous number for a country ruled by the military the supreme council of the. armed forces or skaf

that's no surprise but surprisingly enough those discounts took over from who'd previously run the country are not themselves before military tribunals. for. suspected killers. to be civil court system. the ordinary people there may be. medical records this is a better way and this is in the. hasty with no proper investigation usually with no lawyer and behind closed doors and with no right of appeal human rights activists complain military trials provide no justice and violate human rights you know you have a nineteen year old getting a twenty five year old send your centers because he walks i'm out of cocktails and people who are found guilty of killing somebody by brutally beating him up and

torturing him until he died these are getting seven years in jail so i mean there obviously there's something wrong with this picture a lot of these people are tried for absolutely no reason i mean someone just just being in the wrong place at the wrong time is enough to get you in trouble that's exactly what a man says is his case september the time the israeli embassy in cairo the place. beyond screenplay writer was present at clashes between the army and demonstrators and began helping lean jered arrested he was brought to military barracks after summary trial which lasted just twenty minutes he was taken straight to prison to serve almost four months for terrorism he says the military dishes out a very rough justice. in the emerging a seventy two year old he's been in the army for at least two years it must be hard for him to take off his uniform and this large start and this was you. the way they

know how to deal with problems. for several days what did know her son's whereabouts. when his sister came to me and said i have to talk to you i knew it was about him hoping for the best i prepared myself for the worst. a month after ahmed was released he now faces yet another trial from the same incident at these really embassy. goal is to intimidate people the message is clear if you go to to really you'll be arrested and it makes us even stronger how is it they don't understand that mad is no working on a book he wants to title you must shut up he explains if people didn't give up after been beaten and humiliated they'll never give up until their voices a herald. the citadel in cairo egypt in medieval symbol of power and strength it was fortified centuries ago to protect the region from his enemies at

that time crusades and crusaders today egypt's rulers are doing the same striving to defend themselves and to keep power with thousands in jails and dozens killed the concern here is that they may have been working too hard. written off now t. cairo. well true a freelance journalist based in cairo told me earlier that human rights violations on the streets of the capital have led to concerns mubarak has been replaced by another dictatorship. people are unsure about whether i'll actually transfer in gene so far the military the ruling military council has yet to fulfill any of its promises that said since it came into power also just generally on the streets we're seeing massive human rights violations towards protesters or people expressing their freedom of speech and we've seeing excessive use of tear gas and cartouche they call it here which is birdshot and maiming protesters has been

absolutely no reform of the police as it is simply fired by the football disaster a few weeks ago which saw over seventy four people die so essentially we've seen very little reform since mubarak stepped down and people are a basically anxious that nothing will change and that will just slip into a new new dictatorship i think most people here would post it would say they do say that the revolution never ended but it's called the continuance of the ongoing revolution really since january even after mubarak stepped down this time last year they've been continuous sit ins and protests and violent clashes with egypt's security forces pushing for protestors pushing for change that they haven't seen yet. a draft resolution on syria has been circulated at the u.n. general assembly by saudi arabia it's similar to the text vetoed in the security council last week while calling for an end to violence by all sides it lays blame primarily on the syrian authorities meanwhile state t.v. says government assassinated an army general in the capital damascus the first

killing of a high ranking military officer since protests began amid reports of ongoing fighting in the country the city of aleppo suffered twin blasts on friday that killed twenty eight the free syrian army initially claimed responsibility for the turks but later denied involvement and blamed the government syria's opposition says it expects official recognition from arab gulf states later this week with no u.n. mandate to intervene in the crisis the u.s. has now said to be a government a coalition of states to support the opposition with calls from washington to all the rebels. from the sorry cuse university based in beirut told me earlier that she thinks imposing syria would lead to an even deeper crisis. it's been very well known that the united states and european allies are interested in regime change in syria and they won't stop at anything that does not deliver a different government that they hope will be more sympathetic to western interests

which is quite naive really when you think about it because the people in syria are likely not going to be more sympathetic to american and israeli aggression throughout the region the free syrian army is the armed opposition conducting very violent acts against civilians in syria against both the government and this in syria is we don't know who the body counts you know what politics people have killed i don't think the syrian people are really going to appreciate an outside exile group arming and training these people in different quote unquote democracy exercises and it's great for the think of what could be coming next externally. force power is is suddenly implanted in syria that is not at all representative of the people and the violence is just not going to end syria could lead into another iraq so it's just really quite devastating right now the way things are progressing . this is r.t.

life here in moscow with twenty four hours a day still ahead for you this hour forty tension and pollution find out about the claims that american military bases around the world are costing lives through their environmental impact and wrecking the area around them. a lot still to come but first the technocrat prime minister of greece has cleared one major hurdle on the way towards more rescue cash as his cabinet approved the deep cuts needed to secure it however he lost six ministers who resigned in protest at the deal now the plan is to be given the green light by parliament some m.p.'s from two major coalition parties are threatening to vote against the deal while conservatives according for an election the new deal includes farming fifteen thousand civil servants and lowering the minimum wage being pushed by e.u. leaders who put the next one hundred thirty billion euro bailout on hold trade unions are in the second day of their forty eight hour strike with crowds outside the parliament one friday protesters clashed with police who used tear gas in

response to stones and firebombs economic analysts believe the greece could already be in a state of unofficial before. it looks highly likely that the parliament will get enough votes to pass this package it only needs a majority of the three hundred members of deputies it's a human camel system here what we have at the moment is a structured default in fact almost seventy percent of the net present value of all outstanding bonds which will reduce reduce our debt burden by a hundred billion now that isn't such a terrible deal i'm not sure that all of the investors will take it up it may not get one hundred percent take up but it may get seventy or eighty percent and even that helps the european leaders face some difficulties because while in greece there is a lot of austerity weariness over there there is a lot of wealth that. they can't be seen. giving away money even though most of

this is in the form of loans they have to impose some strict conditionality for two reasons to please their local electorates and also to make sure that this money can eventually be repaid by a more sustainable bridge that they have so it's a very rough. great politicians find very hard to stomach and there are also other issues in the sense that. you can't really pass anything and everything willy nilly and they have at the beginning of this whole process so to make an example of greece so others don't go down the same road and if they don't disperse the money quickly which they haven't done it increases their leverage of the great politicians of the greek government to pass the kind of measures they want. by the way more analysis on europe's debt woes on our website is hard and while you're there here's what else you can find online at the moment find out how the cia website has become the latest victim in a series of hacker attacks from the anonymous group after suffering

a crash on friday night. and despite some wild rumors north korea's new leader kim jong un is not dead it turns out that stories about an assassination that sparked a social network frenzy was simply a joke for me to know about but in full the t.v. dot com. thousands of relit across europe against the international anti piracy accord known as actor people in the u.k. germany poland and lithuania have voiced their fear that the treaty would harm freedom of speech and lead to on line censorship totties more smith has more now from london. in line with hundreds of thousands of people all over europe today these people here in london behind me are demonstrating against acts or the anti counterfeiting trade agreements and disagreements which would make it so that serviced by suspects be responsible if they used was pirating for these activities

using activism meets with no mo money it's all of the in there not to me i mean very nice anonymous. here and none of this is very often where they got banned as we didn't want to shut down instead they're saying no actor culture is made of these and stop internet censorship and one of the main objections to the at truth remit is that if we negotiate amidst entirely in secret say much to the main mickey you negotiate resign didn't originally say that the document was secretive and undemocratic has been negotiated in secret point people who you know are not less civil society and they have are delighted to see you home and say that this will affect our civil liberties this will reduce freedom of speech this will stop us from being able to comment to hold people to crank the results of the treaty is incredibly dangerous one of the main complaints about this document is it's unclear wording that it would be easy to make an intentional copyright infringement

minutely liable and also criminalizes what used to be a civil offense so that means we see a lot more cases tenchi like the one of a minister used in women who shared twenty four songs on the internet and found herself liable for one and a half million dollars' worth of damage and eventually sixty two thousand five hundred dollars that each song that she had to share and the threat was to bork it since the threat to society suits the threat to internet service providers your experience a few chub of facebook a flicker could become very different but it's also that even innocently connecting to copyrighted material. in crude criminal sanctions this is not just about the internet either it would also like to close electronics and also to medicine which would make it more difficult for countries to buy generic untreated market drugs making it more expensive for

a picture that people have basically what these people are saying is that this is being made behind closed doors fundamentally the economies of privacy and the civil liberties of everyday people and the fact that it's been done in secret means that they can only assume that this isn't in their best interest. or smith or london live to london discuss the protest with peter broadwell he's a campaigner for the open rights group to states that all procedures should be implemented in a manner that preserves freedom of expression fair process and privacy so one of the protesters worried about your protesting there today what you that's right. i think we just today the concern is that there are some fine words about respecting fundamental principles but in practice the. wording in the green and does creates real concerns about.