potentially criminal or a fraudulent situation is that we don't have somebody who skipped town is ended up in the cayman islands or the money in a swiss bank account everybody is still on board everybody is still here so it's the money itself it's 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 of 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 in 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 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 wall street of compliance officer the guy who is supposed to oversee the day to day margin call isn't 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 complete. only 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.d.s. man of man financial which is the company that spun off. m.f. global into a public company in two thousand and seven peter obviously 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 that 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 as a pub. for the investors of the customers can't look and see what did peter 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 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. full as

a priority and that if it would have been done as chapter seven 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 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 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 in 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 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. 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 signed 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 we'll have to have you back on that spread of time now thanks so much for being the cause a report francine mckenna thank you all right and 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 report or t t v dot ru until next time x. has are saying by all.

journal strike in egypt mocks the fast and about the ousting of dictator hosni mubarak with protests according to the country's military rulers to stand down accusing them of pain during reforms. greece's prime minister just parliament approved fresh cuts in return for a one hundred thirty billion euro bailout from the i.m.f. and do you warning the country faces economic chaos otherwise thousands have died and others however angry at the harsh impact i was to receive including slashes the minimum wage and that's also. europeans demand internet freedom and censorship speaking out against the global

anti-piracy apps their governments. are welcome to all see twenty four hour news life my name is you've told me a story now at your sons are staging a journal strike and 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 accusing them of hindering reform. reports not from tahrir square. if you ask those people they will tell you that really nothing has really seized 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 do with the military council the scouts which is at 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 strikes 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 clutch egypt into further poverty and disarray also the religious leaders in the country are not supporting the strikers well but students the young people who work behind it this really shone with the workers who wanted to see some real differences there are saying that things must be chasing mediately more on why it's ins 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 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 as the method 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 all skaf 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 the supreme court system. or the very people that 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 send your centers because he has 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 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 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 last moment 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 words 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 to title you must shut up he explained if people didn't give up after being bitten and humiliated they'll never give up until their voices are

heard. the citadel in cairo egypt and 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 dr sure who is an expert on middle east politics says people on the streets of cairo are frustrated with the new politics which reminds them of the era of the dictator him of. 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 scouts 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 konami interests and the economic empire that the medical establishment owns. a draft resolution on syria has been circulated at the un 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 the syrian authorities meanwhile stated he says gunmen have 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 a fire that killed twenty eight people the free syrian army initially claimed

responsibility without tox but later denied involvement and blames the government syrian deputy foreign minister said that terrorist sponsored by the west are behind the plot. a woman insurgents and terrorists have committed this attack only an unseen person could see that the government is killing its officials and officers and destroying its own administrative buildings these armed terrorist groups were created to commit these crimes and they have committed them in the past and will continue to do so if to withstand the arab street supporting the us is aware of syria's power it realizes that there are people in syria who are against war against the ideology and that's why the us supports armed groups and undermines their rival so that the groups take action instead of the americans which is the model of the middle got a lot of syria's opposition says it expects official recognition from arab gulf states later this we can't and with no you on mondays to intervene in the crisis

the u.s. is now said to big gathering a coalition of states to support the opposition with calls from washington to all the rebels and disarm or sick from the sorry crazy 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 that. 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 it's conducting very violent acts against civilians in syria against both the government and the innocent syrians we don't know who the body counts you know what politics people

have who are 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 just grateful to think of what could be coming next externally forced 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 her supporters in the northern city of tripoli ten of the wounded were lebanese soldiers including a sergeant who was in a critical condition the two sides fired guns and rocket propelled grenades at each other clashes have continued since friday own daughter blinded since june one six people died in demonstrations against syria's government. let's move on greek

lucas papademos has warned of uncontrollable economic chaos of parliament does not approve a plan for fresh council sunday measures have already been adopted by the greek government to secure one hundred thirty billion euro bailout from the u.s. and international monetary fund well that is the country could default in march six ministers have a regicide protest over the new carson some and he's from two major coalition parties are threatening to vote against it in parliament the draft bill suggests firing fifteen thousand civil servants and lowering the minimum wage greece's two biggest trade unions have held a forty eight hours trying to gain the new measures while demonstrators clashed with police on friday and margaret bogan grieve for different ash advisory a.c.m. partners in chicago but is that a new bailout or merely deferred great economic collapse. we've all either going to commit the measures which i and many argue don't it's 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 i don't think the european union or more grief is going to allow that to occur here frankly i think the markets have been doing themselves the last six months by thinking that there is a better or option i think what your first point is the much like greek economy thing is a shrinking the economy or to five percent this year think about what that means for our country already on the brink. you know social not necessarily collapse with definite definitely instability and economic not through it but certainly you know it's certainly not growing at things certainly aren't getting better a decrease of more to five percent of growth combined with us gerrity measures combined the political pressures of the european union will definitely distort disrupt raise significantly in two thousand and twelve. than to read it here is to know what two things could be the in part of the latest efforts to save the greek

economy so ladies had to also. underline it not to rip a cent of you believe the new measures will do nothing as the greek economy overread to do and while such proper sun say that it will only mean the hardship for the greek people twelve percent of you think bailouts are the only way for greece to survive on just one cent believe the e.u. will not slice the greek economy co-opts and also in line for you this out. despite some wild rumors north korea's new leader kim jung il is not dead so it turns out that stories about an assassination that sparked a social network frenzy or simply a drug. in dull so tame a low temperatures find out at all he told how ukrainian children withstands the bone chilling freeze and big coldest spot for decades. it is easy.

to. be official anti obligation to go on a phone called talk from the dumpster. geology. video on demand all g.'s mind old girl. and street now in the palm of your. on the dot com. hundreds of thousands have run it across europe against the international anti-piracy accord. people in the u.k. germany poland this waiting and the netherlands has voiced the fear that the treaty

would hold freedom of speech and lead to online censorship with has more from london. in line with hundreds of thousands of people all over europe today these people here in london behind me are demonstrating against this act or the anti counterfeiting trade agreement disagreement which would make it so that step by step she was saying if they used the pirates it takes for the police to use its activists efficiently to look mo monitoring all of these in their looks to me i mean very nice anonymous. here and none of this is very often where that they've got van is reading to shut down instead they're saying new actor culture is make each of these and stop internet censorship and one of the main objections to the actress remit is that if we negotiate with entirely in secret to say much to the main mickey you negotiate resign didn't exactly say that the document was secretive

and undemocratic says we negotiated in secret people who you are not let cities assign to you they have a delight to see your way to 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 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 infringer generally liable to criminalize what used to be a civil offense so that means we see a lot more cases potentially like the one of a minister meeting with the new shared twenty four songs on the internet and found herself liable for one in a half million dollars' worth of damage and eventually sixty two thousand five hundred dollars for each song that she had to share and the threat. mr borgen see it's the threat to silence it's the threat to internet service providers your experience of you chub or facebook

a flicker could become very different but it's also felt even innocently colectomy into copyrighted material could actually learn in crew 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 poor countries to buy generic own trademarked cheap drugs making it more expensive for the poorer countries to keep their people healthy basically what these people are saying is that the stations that have been made behind closed doors fundamentally affect the economies in 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 isn't in their best interest. and bradwell like a painter for the open rights group who took part in the london crash has told r.t. that the truth his biggest danger isn't giving too much power to controlled private interests.