themselves they got used to 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 almost record 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 now francine when i was working on the last range

of compliance officer the guy who is supposed to oversee the day to day margin call isn't and balancing 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 machinations 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 but 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 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't 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 done a role in all of this well interestingly enough peter b. c also audits j.p. morgan and you have pete obviously also auditing the law firm that the trustee get is works for. so you have a lot of 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 in 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 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 that they would have had the customers put first my personal belief is that this is really sort of peripheral to the fundament. well issue if there

wasn't 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 riff come a couple of times and of course going back to two thousand and seven or the rev co situation blew up it was a huge red flag at the time in terms of combing global

financial credit market collapse but nobody did anything at the time but could you give us a little insight into how refco situation relates to the m.f. global well refco is sort of the genesis of m.f. global refco is the futures firm that became m f global after it was sort of washed through man financial but refco as 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 and that's the defense that probably the accounting firms lawyers or anybody else that was either standing on the sideline. 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 occurred 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 schmuck 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. 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 the 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 that time though thanks so much for being on the kinds report francine mckenna thank you all right that's going to do it for this edition of the kaiser. report was made max kaiser and stacy

herbert i'm like my guest francine mckenna if you want to send me an e-mail please do so a kaiser reported or t t v dot ru until next time x. has are saying by all.

egypt's trees and squares are alive with a rallying cry is once again to get after president mubarak was forced from power and 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. greek lawmakers pander to brussels with new cuts in exchange for bailout cash while people dance their frustration on the streets of athens also. europeans demand internet freedom and no censorship is speaking out against the global anti-piracy acts bad governments all forms.

hello and welcome to all see twenty four hour news live from moscow my name is tom and story now egyptians are staging a general strike and a day of civil disobedience to meld the fast in of us three of the toppling of former leader hosni mubarak calling for the military rulers to step down immediately accusing them of injuring. reports from the iconic to have square. if you ask those people they will tell you that really nothing has released means that in the years since the barak 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 scout is head of the country's government right now for a few simple steps were 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 at the source of this call are the need to preserve illusionary alliance which is comprised of more than the 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

judge 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 changing 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 made plans 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 make a 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 scaf

that's no. surprise but surprisingly enough those discomforted over from who'd previously run the country are not themselves before military tribunals. for. suspected killers. to be tried in civil court system. or 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 son to your centers because he had a box of molotov 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 trying 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 he's really embassy in cairo the place. the young screenplay writer was present at clashes between the army and demonstrators and began helping lingard 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 terrorists and he says the military dishes out a very rough justice. caught in the been 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 stuff and this was the only way they

know how to deal with problems there. for several days one of our did know her son's whereabouts who are the one who says 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 it's been. a month after ahmed was released he now faces yet another trial from the same incident at these really embassy. go is to intimidate people the message is clear if you go to trial really you'll be arrested and it makes us even stronger how is it they don't understand that the matter is now working on a book he wants to title you must shut up he explained if people didn't give up after been beaten and humiliated they will never give up until their voices are heard. the citadel in cairo egypt a 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 and dr who's an expert on middle east politics says people on the streets of cover are frustrated with the new politics which reminds them of the era of the dictator in the dark. what you see is more or less pressures on the street that very much reflects the frustration of these protestors with the mismanagement or the management of the transitional period by the this gaffe i think the supreme council is willing to be followed in the end but with very strict conditions conditions that sure that it still has reserved a means of power in terms of national security policy in terms of foreign policy

tens of constitution of immunity for its leaders and in terms of the vast canonic interests and the economic empire that the medical establishment owns. a draft resolution on syria has been circulating 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 gunmen have assassinated an army general in the capital damascus the first killing of a high ranking military officer since protests began and with reports of ongoing fighting in the country the city of aleppo suffered twin blasts on friday that killed twenty eight people the free syrian army initially claimed responsibility for that but later denied involvement and blames the government meanwhile sewers opposition says it expects official recognition on arab gulf states later this weekend with no u.n. mandate to intervene in the crisis the glass is now said to be gathering

a coalition of states to support the opposition with calls from washington to all of the rebels. from this time accuse university based in beirut so imposing a new regime in syria would lead to an even deeper crisis. it's been very well known the united states and european allies are interested in regime change in syria and they won't stop at anything. does not deliver a different government that they hope will be more sympathetic to western interest 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 you know it is the syrians we don't know who the body counts you know what politics people have were killed i don't think the syrian people are really going to appreciate you know

an outside exile group arming and training these people in different quote unquote democracy exercises and it's just grateful the think of what could be coming next in external. 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. the greek cabinet has approved freshest erisa measures demanded by the e.u. and i.m.f. in return five vital one hundred thirty billion euros bailout without its the country could default in march parliament will vote on the plan on sunday six ministers have already resigned in protest over the new cars and some and a piece from two major coalition passes a thrashing to vote against it in parliament the draft bill suggests firing fifteen thousand civil servants and lowering the minimum wage raises to biggest trade

unions have held forty eight hours trying against a new measures while demonstrators clashed with police and find a current economic analyst in its track it's bullies greece could already be in staines of an official default. it looks highly likely that the parliament will get enough votes to pass this package it only leads a majority of the three hundred members of deputies it's a unicameral 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 bugs which will 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 wariness over there there is a lot of buy out for to be had so they can't be seen as giving away money even

though most of this is in the form of loans very you have to impose some strict conditionality for two reasons so please the local electorates but also to make sure that this money can eventually be repaid by a more sustainable bridge that they have suits and very rough conditions that 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 will. really 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 i mean if they don't dispose of the money quickly which they haven't done it increases their leverage of the great politicians of the good government to pass the kind of pressures they want their washing our sea on so plenty more to come for you dashing through the snow take a look at how russia's president dmitry medvedev shows his kings goes insult change . also progress in the lead son bound to find out how

a dog from ukraine has become something of a legend in just a few. thousands have rallied across europe against international antiparos so-called known as access people in the u.k. germany poland and lithuania have voiced that fear that the treaty will hold freedom of speech and lead to online censorship lower smith has more from london for. in line with hundreds of thousands of people all over europe today these people here in london behind me are demonstrating against accept the anti counterfeit sick trade agreement disagreement which would make insensitive by the sixty responsible thing they used was pirating it is defending these activists in the streets will not moan moan it's tearing of the hymns their love to me i mean very nice anonymous. be anonymous and very often where that they got banned is waiting to shut down instead they're saying no actor culture is made of copies and

stop internet censorship and one of the main objections to the at truth movement is that if we negotiate based entirely in secret say much so that the main e.u. negotiates and resign didn't originally say that the document was secretive and undemocratic has been negotiated in secret people who you know are not let civil society and they have a line to say comments and say this will affect our civil liberties this will reduce freedom of speech this will stop us in 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 generally liable and also to criminalize what used to be a civil offense and that means we see a lot more cases tenchi like the one of a minnesotan woman 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 and 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 innocent trico neck tell you to copyrighted material. could actually increase with 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 poor countries to buy generic on trademarked she cut drugs making it more expensive for the poor actually to keep their people healthy basically what these people are saying is that this this and that have been made behind closed doors fundamentally affect the economies the privacy and the civil liberties of ordinary everyday people and the fact that

it's been done in secret means that they could only assume that this isn't in their best interest. piece of rival campaign ever they opened wide screen who took part in the london press has told us here that the traitors biggest danger isn't giving too much power time controlled interests i think what we and the protests today in europe were concerned about is that there are some fine words about respecting fundamental principles but in practice the very broad wording wording in the agreement does create some real concerns about how it works actively handing control and power over what happens online fastidiously to private interests and that will have inevitable consequences for freedom of expression for people's privacy and for innovation in many of the benefits we enjoy from the internet when it's done through mechanisms and treaties that are overly broad and give too much power that's too unchecked to private interests if you give businesses the power to

have content taken down but have the users effectively surveilled by their internet service providers and you're creating a system there that can be abused and when mistakes can happen and that's why it's such a dangerous agreement. and more now on this is only the own line piracy treaty on our web site you don't call of course and while you know that is what else you can find at discover how the cia web site has become the latest victim in a series of pockets honks from the anonymous group of the suffering a crunch from sunday night. just plain sounds wild rumors north korea's new leader is not dead so it turns out that stories about an assassination that sparked a social network's frenzy or some bad joke to write about that and still as a team don't call.