all fits the assets themselves 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 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 did 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 zone 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 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 jobs 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 auditors involved in the m.f. global case and all their any conflict of interest there the auditors are pricewaterhouse coopers and they have a very long history with m.f. global because they were the auditors and they still are the auditors of the e.t.f. man of man financial which is the company that spun off. m.f. global into a public company in two thousand and seven peter b c also was the ones that created

the original internal control procedures and sarbanes oxley procedures way back when the company was called refco. pete have you see 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 into a report period in march at the time when the bonds were issued in august they had to file special reports with the f.c.c. they had to file special reports with the c f t c and those reports are no longer on file at the f.c.c. or the c f t c so we as a public or the investors or the customers can look and see what did peter b. c. say or do about any kind of weakness in controls at any point in time in the immediate future or media past now one million it 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 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 the reports suggest that j.p. morgan in the bankruptcy was junior to the customers in terms of claims but somehow they've been it related to 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's 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 then they would have had the customers put first my personal belief is that this is really sort of peripheral to the. but

a mental 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 all 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 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 refco 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 and that's 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 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 design 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 the situation we're going to find somebody very close to corps 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. the kaiser report was made max kaiser and stacy

herbert i would like my guest francine mckenna if want to send me an e-mail please do so i kaiser report r t t v dot ru until next time x. guys are saying bye oh. well. it's technology innovation all the latest developments around russia we've got the future are covered.

these are the streets and squares are alive with crowds once again again after president mubarak was forced from. people here calling the military council to step down immediately saying they're blocking reforms in the country more from tahrir square just ahead. also greece's prime minister just parliament approved fresh cuts and return for a one hundred and thirty billion euro bailout from the do you want to become chief exist you can only tell us otherwise thousands have run it in athens however and grabbed the heart of the bank that was terrorists including slashes the minimum wage.

and europeans demanding internet freedom and censorship speaking out against the global enterprise government. international news live from moscow this is all she was me thanks for joining us first egyptians are staging a general strike and a day of civil disobedience to mark the fasting of us of the toppling its former lead to hosni mubarak calling for the military rulers to step down immediately accusing them of hindering reform. reports now from tahrir 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 thing that things have gotten worse because now they have to deal with the military council the scouts which is it and head of the country's

government right now for refusing to step down or saying that they're going forth with democratic forms but most people here believe that is not the case they're also calling on workers for a massive strike to go on indefinitely until the military council steps down. the muslim brotherhood who are saying that these are the does 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 are behind it this really should along with the workers who wanted to see some real differences they are saying that things must be changing mediately more on why it's ins are going to strike here's my colleague mary thing else now. around a thousand killed at least six thousand injured and even more still missing egypt's people have paid a high price to live in a new country but despite all the sacrifices the shadow of the old regime still

looms large 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 miles 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 all cash that's no surprise but surprisingly enough those discomforted over from who'd previously run the country are not themselves before military tribunals you cannot have four. suspected killers. thought. to be simply a court system. where ordinary people there may be. medical records this is a better way and this is illegal 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 mouth 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 it there obviously there's something wrong with this picture a lot of these people are trying for absolutely no reason i mean some would 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 these really embassy in cairo the place. the young screenplay writer was present at clashes between the army and demonstrators and began helping the injured arrested but 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 emerge in a seventy year old who's been in the army for at least thirty years it must be hard for him to take off his uniform and this lifestyle and this was the only 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 worth around a month after ahmed was relieved he now faces yet another trial from the same incident at these really embassy. they go 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. is no working on a book he wants

a 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 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 cross aides and procedures 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. griffin optionality cairo. and sure he's an expert on middle east politics says people on the streets of cairo frustrated with the new point six which reminds them of their old 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 ensure that it still has reserved a means of power in terms of national security policy in terms of foreign policy in terms of legal and constitutional 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 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 size it lays blame primarily on that. meanwhile state t.v. says gunmen have assassinated an army general in the capital damascus the thoughts killing of a high ranking military officer protests began amid reports of him going fighting

in the country the city of aleppo suffered twin blasts on friday that killed twenty eight people free syrian army initially claimed responsibility for that time but later denied involvement and blames the government meanwhile syria's opposition says it expects official recognition from gulf states later this weekend there was no u.n. mandate to intervene in the crisis due to us is now said to be gathering a coalition of states to support the opposition with calls from washington to arm the rebels. from the university based in beirut says 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 innocent 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 grateful to think of what could be coming next next. only force power 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 situation in syria has triggered fierce clashes in neighboring lebanon two people died and dozens were

injured as soon as hostile to syria's regime have clashed with otherwise supporters in the northern city of tripoli so turns a of the potential the wounded were lebanese soldiers including a sergeant was in a critical condition the two sides fired guns and rocket propelled grenades to each other clashes have continued since friday and are the blunt is since june when six people died in demonstrations against syria's government. greek prime minister lucas papademos has warned of uncontrollable it can only chaos of parliament does not approve a plan for fresh cuts on sunday your storage the measures have already been told by the greek government to secure one hundred thirty billion euro bailout from the euro and international monetary fund without as the country could default in march six ministers have a ready to resigned in protest over the new cars and some employees from two major coalition parties are threatening to vote against it and parliament the draft both suggest firing fifteen thousand civil servants and lowering the minimum wage

greece's two biggest trade unions have held a forty eight hours trying to gauge the new measures by demonstrators clashed with police on friday and margaret grogan grieve for the financial advisor a.c.m. partners in chicago believes that a new bailout will merely defer greek economic collapse. either going to commit the measures which i and many argue still is not enough to guarantee that more people or it will be all just sooner rather than later a lot of people are talking about disorderly default i don't think the european union more is going to allow that to occur we frankly i think the markets have been like the last six months by thinking that there is a better or option i think what you're going to see much like greek economy thing is a shrinking economy who want to buy first. this year think about what that means for our country already on the brink oh you know social not necessarily collapse with

death definitely instability and economic ruin it's certainly you know it's certainly not growing things certainly are getting better a decrease of more to five percent of growth combined with the measures combined pressures of the european union will definitely just do what disrupt significantly in two thousand and twelve. and so plan to model for years to come they get done through this snow so take a look at how russia's president dmitry medvedev shows his skill and skills in salt . and also progress in leaps and bounds find out how a dog from ukraine has become something of a legend just a human. but first of thousands have arrived across europe against the international court known as acts or people in the u.k. germany poland and this where near have voiced their fear that the treaty would harm freedom of speech and lead to online censorship on his laura smith has more

from london for us. 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 agreement disagreement which would make it so that serves by the stench of the uses of pirating it is to find these activists efficient meets with no mo monitoring all of these and they're not to me i mean very nice anonymous. here and none of this is very often where they've got banners we didn't want 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 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 says we negotiated in secret people who are not let

civil society and they have a july just say no way to say 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 account the result is a 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 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 block 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 felt even innocently colectomy

to copyrighted material. it actually will increase with criminal sanctions this is not just about the internet either it would also apply to clothes electronics and also to medicine which would make it more difficult for the poor countries to buy generic on trademarked cheap drugs making it more expensive for the poor actually to treat their people healthy basically what these people are saying is that if this is a 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 can only assume that this is it in their best interest. and peter bridewell can paint over the open wide screen where he took part in the london press has told r.t. that the treaty is biggest danger isn't giving too much power to turn controlled private 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 worth 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 many of the 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 seem to unchecked to private interests if you get businesses the power to have content taken down to have users effectively surveilled by their internet service providers and you're creating a system there that can be abused and where mistakes can happen and that's why it's such a dangerous agreement. and let's check some world news and review this hour bahrain police have been fired tear gas and stun grenades to disperse hundreds of peaceful

protesters in the capital in the narmer around two hundred people gathered at the diplomatic quarter and set up toward the center of an uprising and it's still unclear whether anyone was injured but witnesses say those to one protester was detained tensions in bahrain are rising ahead of tuesday's one year anniversary of the first large crowd threats against playing a role. one of the sons of the late libyan leader muammar gadhafi could up there has been arrested a new share according to media reports a day earlier his reticence to lead an uprising against leave this transitional government in a television interview gadhafi claimed has many followers and leaving including within the ruling national transitional council earlier new share said it will not extradite society gadaffi. at least two palestinian protesters have been wounded by is really forces firing tear gas and rubber bullets that injured the word monk demonstrators demanding the release of hardware we've been.