if you wanted something we just took it you didn't even think about it. but you should be very. well here to talk about what this says about the power of too big to fail banks and the connected progeny they produce is mark melinde he's host of uncorrelated investing and author of high performance managed futures the new way to diversify your portfolio he's been in the derivatives industry as a trader. working at funds for a very long time welcome to the show thanks for being here. yeah so let's start from the top ok with and the global the focus is really been where is that our customers getting their money back which is one part of the story and a big one but you see the importance slightly differently because you are in the trenches you've been in the derivatives industry a long time you've seen a lot why is this case so important in your view. it's a buck more than the m.f. global customers this is about the core pillar of the futures industry and market

integrity and stability and it's also this amazing story about how they're too big to fail banks just every time the explosions get bigger and bigger two thousand and eight the mortgage derivatives crisis which someone should be in jail for by the way that exploded and then now we have enough global this is potentially a large is fraud committed by the two big banks you know there are organizations that you can look at it and say they have their fingerprints entirely on this situation it's been documented and there's not an apparent investigation according to my sources the department of justice does not have an open file on m.f. global and they're all even though up to louie freeh who was he's involved in this is entirely bizarre so it's a bizarre kit so you're basically saying fraud and you're saying it's not being prosecuted is not being followed up on is not being investigated why

a guy was forced off or the reason i say fraud in congressional testimony they said the documents were falsified and number of occasions the party said documents have been falsified there's there's documentation of very unusual behavior between regulators withholding documents before a bond offering now this particular document that was withheld by a regulator contained critical clues as to how the trade was structured and how that trade was structured as and hire leave bizarre and this one not even be investigated and why do you think that would be what you think's going on here. well you know i'm not the expert too big to fail just started to get involved with this from the commodity standpoint but i've got to tell you there's a significant amount of money that's going to be extracted off of the m.f. global corkins that's apparent to me it's also apparent that based on some of the

early transfers of money that you know j.p. morgan based on the information i have in front of me has a lot of questions to answer and i don't know why they're not being asked these questions let me ask you this question what would happen to john. and to m.f. global if if this wasn't john chorus line if this was just some normal guy who wasn't from goldman sachs it wasn't politically connected was just a normal fund manager and this was has done that when. you took customer money what would happen to him what would happen to the fund. ok first off the regulators would come through the door they would us the door down ok they would throw the guy up against the wall get a spotlight in his face and say give me the organizational chart and go down the list boom boom boom boom boom someone would be in jail right now if this were not john corazon period and you know you have been some of your information according you has been summoned by congress you've been investigating this so what is the

biggest evidence that you have that implicates john corazon and wrongdoing or shana's on behalf of the regulators that you say is unfair ok first off let me start by saying that my an article i wrote was mentioned in congressional testimony and i have provided documentation on the f.c.c. document withholding scandal but in my opinion is a pretty powerful document and should be investigated a c a t c commissioner has even mention that that as you see documents issue should be investigated there are a lot of issues and we were yet start there's a list i was a list of about ten eleven different issues that should be investigated and i don't know that any of them are being investigated so give me like the most compelling examples a few of the very most compelling bits of evidence you have ok. there is critical risk disclosure that again discusses how the trade structure was set up

the f.c.c. withheld this document prior to a bond offering taking place now there are said to be a number of different meetings that mr corps and i had with the regulators and then this document was withheld back in that was later timestamped i the regulator as being received after the bond offering that's not the case it was received may thirty first before the bond offering so they put this document on the a good database and then wait about three four months december fourteenth they take it down and they put it back up with a new timestamp identifying the correct time and date that document was submitted so are you are you saying basically that it shows that the regulators are working in my opinion on behalf of mr gore's on now that needs to be investigated i can only go so far you know i mean i don't have subpoena power i don't have access to

the witnesses you know and that's another crazy thing about this entire m.f. global situation it's been left up to individual people for the most part you know if you look at the commodity customer coalition who's been fighting the battle from day one those guys are group of individuals no one knew each other when they came together and you know for the most part are operating off a credit card and they're fighting against too big to fail banks that have unlimited pockets and have indigence a very underhanded maneuvers in my opinion i mean everything that you're describing sounds like what i use as a metaphor and my set up for this whole story of thousands like the mafia or a mexican drug cartel. ok i think and i don't want to sound too extremist here but if you compare how a mexican drug cartel operates just do this without emotion take a look at how they operate and then apply that same template and so how the too big

to fail banks operate there are a lot of differences but one of the big differences is the too big to fail banks influence rules and regulations to make what should be fraud legal and one thing i want to bring up i if we can bring up that zero hedge article that talks about this and gives an example of this basically in their writing that the problem here is that the existing laws against pillaging customer accounts and other acts of fraud are in conflict with the bankruptcy statute designed to make the world safe for large banks and over the counter derivatives does that get to kind of the core of what you're saying mr mullin. the bankruptcy process is another you know there are so many cans of worms here that the bankruptcy process appears to me to be we pick us and once you start getting into this bankruptcy process you know like for instance why louis freeh is even considered to be a bankruptcy trustee these trustees can make hundreds of millions of dollars off of

these liquidations the trustees end up coming out much further ahead than do the m.f. global customers and then why this whole process was put into a simple liquidation as opposed to a chapter seven liquidation which is core to the futures market integrity is another subject to be covered in rust and you know you've been in this industry for a very long time you said you believe the two thousand and eight mortgage derivatives whole collapse you believe that that was fraudulent there was fraud going on there that went on prosecuted is this in your opinion the same or worse. worse much worse and why do you think that is. first off the staggering influence of what's going to happen i don't know the people understand the integrity of the come out of the markets has been put in jeopardy i this entire scandal. that is one precedent and it was done by certain people in regulatory

power observing it and a while when this destruction to take place that's crazy you said as a watergate of our time and e-mail do you stand by that absolutely as i said it on t.v. i'm upset at sun's you bill all right well i want to appreciate you i appreciate you being here to tell us everything you've been fighting from the trenches that was mark maleng he's author and host of uncorrelated investing and that's it for our show thank you so much for tuning in you can feel free to follow me on twitter at lauren lyster you can give us feedback on the show at youtube dot com slash capital account you can also go there i suggest you subscribe and all of our poll shows are up there along with all of our interviews our past words of the day we did a good one on futures trading so you might want to go look that up as you. yourself on this m.f. global story and also be sure to put your comments because we will do your feedback it is tomorrow i will respond to the very best day and as always you often see

responses from our producers right there on the posts to you but for now from everyone here at capital account thank you so much for watching come back tomorrow and have a great night. wealthy british soil. is no time to. go. around the. market why not. find out what's really happening to the global economy with much stronger a no holds barred look at the global financial headlines tune into. there's a report on our. mission free credit cation free

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. well as violence rages on in syria you and leaders pass a symbolic resolution to send a message to president al assad but is a non-binding agreement really the best way to end the bloodshed or is it just another diplomatic blitz. the new changing russia is killing our children after these deals and it's not only u.s. diplomats that are mounting a strongly worded attack on syria's government the media is missing the mark again promoting american meddling in the middle east but failing to explain how u.s.

interests are involved we'll explain. and be careful what you put on the internet these days you never know who could be watching your every move chances are big brother is monitoring of you and that internet chokehold isabel to get a whole lot tighter very soon we'll explain. thursday feb sixteenth five pm in washington d.c. i'm liz wall and you're watching r.t. . well just moments ago the u.n. general assembly passed a resolution that condemns the assad regime in syria the west and several arab countries are calling for the syrian leader to step down blaming him for the brutal crackdown and the deaths of over five thousand people now today's vote in the general assembly is mostly a symbolic one while it is non-binding it does send

a strong message that reflects world opinion today's vote comes after china and russia vetoed a similar resolution in the u.n. security council a move which has infuriated other members well to bring us the latest on the developments out of the from the u.n. our correspondent. joins us live now from new york hi there marina i understand that a vote was just passed what is the latest. that's right there was an overwhelming majority of the general assembly that voted to support this draft resolution and one hundred and thirty seven countries voted in support twelve against and seventeen abstained there were just about three countries that had problems with voting but overall those are the numbers that were immediately given that clearly signals that the majority of u.n. member states do support this resolution that has been adopted now what it does is it supports and fully puts its efforts behind the arab league plan

a plan which calls for syrian president bashar al assad to step aside and hand over its power his powers this draft this is now it's a resolution the resolution also condemns syrian authorities for violating human rights fundamental freedoms and using force against civilians and even killing protesters why some countries voted no against this resolution countries including china and russia is because they argue that this resolution is not balanced it does not condemn armed opposition for participating in the ongoing violence that is now dated back eleven months russian ambassador to the united nations vitaly churkin did address the general assembly saying that he believes this resolution is a move towards isolating the syrian government and could hinder any negotiations for peace russia has offered to mediate talks and dialogue between the

syrian government and opposition groups to conduct those talks in moscow but with moves like this happening the international community is putting more pressure on the assad government and clearly the opposition groups are not going to be running to any negotiation table and this is more of a symbolic vote so it is nonbinding so what do they really hope to achieve through it. well what could happen is now that the international community has shown the consensus of opinion it's not a full consensus but majority they could either try to go back to the security council and speak with russia and china about supporting a new resolution that would essentially echo what this resolution says but that just took place twelve days ago in the security council we saw that russia and

china vetoed saying that the u.n. should not be used as a tool for regime change in any country it could also allow possibly for humanitarian assistance in syria possibly for the u.n. to implement that there's also in this resolution a call for the secretary general ban ki-moon to appoint a special envoy to syria but all in all. nobody knows what that will really do at the end of the day you knew you need to reach a consensus within the security council for there to be any binding legal action on an international level and now that this vote has been passed you mentioned just twelve days ago in the security council it was rejected by both china and russia now that this vote has been passed is there now more pressure on the two countries to to agree to this resolution. russia and china may feel more pressure absolutely because this is this is in many ways playing out in the media and many mainstream

media outlets in the u.s. and in western countries are casting russia and china as the villain in this process they have one position where they want to come to a peaceful they believe that there could be a police peaceful solution agreed upon where you get both sides to come to the negotiation table whereas you have the u.s. western countries and our countries believing that the time has come for syrian president bashar al assad to go. so here you have a divided opinion russia and china may be feeling more heat but i think in the aftermath of what took place in libya those two countries are not going to be quick to cave under pressure because we saw what happened in libya following the intervention that the international community promised would bring more peace to that country that has not come to fruition and russia and china believe that if

they open the door for the international community to have free reign in apt in syria there could be a repeat of what happened in libya so we can bet that this will continue to dominate discussions at the united nations but whether russia and china will change positions on syria i wouldn't put my money on the marina thank you so much for keeping us updated on this story that is changing by the moment that was our correspondent marina parr and i have from our new york studio. well as you can see and the u.n. it's the west versus russia and china when it comes on when it comes to how to handle syria but is seems to be the same story in the u.s. media today amid the name calling and finger pointing are some of the facts being overlooked artie's on the stasi of turkey and explains. well it's getting serious in syria i mean very serious the syrian crisis at a peak diplomatic tensions flying high the united states is disgusted that

a couple members of this council continue to prevent us from fulfilling our sole purpose here as american officials switch on the traditional approach of dealing with regimes they just don't like assad is crazy he is a brutal dictator reste killing his own people this is the same narrative that we heard about gadhafi the media is right there to echo whatever spin is presented by those in power well how disgusted are you. disgusted richard they had then a fight with people in power they echo what those people say secondly they don't look too closely at the facts and information war kickstarted as russia and china refuse to stand behind america's position many of chanting russia is killing our children after a veto of the russians and the chinese stand in the way of the un but it was vetoed by russia and china secretary of state clinton reacted differently the russian and chinese veto over him change resolution reacted to with confrontation by politicians clinton suggested russia and china will eventually have to answer to

the syrian people work along their pain and news headlines attacking the two countries without detail or context so they present a serious newspaper don't get it it was please not my own my answer to your question don't be ridiculous the media not showing the will to explain what led to the veto it's a crack in the wall of was basically were ripping the tissue of lies is being presented by the media here if you look. closely or even at all at what russia was saying that there was violence taking place on both sides you don't understand what was happening was there was an armed insurgency backed by people from the outside but this is an inconvenient truth the media have long dubbed the armed groups a popular democratic uprising and oppressors and the oppressed desperate new please come out of the country and growing cause for the world to stop the killing with all the yelling and screaming there is no time to think about who the opposition

might really be and what a toppled regime could lead to it's not enough to just say assad rebels good who are these people it's always possible to replace a bay mediocre or a terrible regime with something that's worse journalist matt lee has been covering the you went for years and knows all too well how the media likes to approach what happens i cover the security council closely enough that i'll say like this sort of the the common sense the knee jerk answered almost everything that happens that russia and china are wrong in the west is right if you're going to cover the security council you might as well actually like try to cover what actually happens rather than if you come in to each day just knowing in advance you know who's good who's bad and what's going to happen i think that you can miss a lot especially when the coverage narrative varies depending on where on the map the conflict stems from the statement that you hear that any leader who kills his own people has lost all legitimacy if that really were the standard i think of you know a not insubstantial percentage of the world's leaders would have lost their legitimacy

as the mainstream media sticks with journalism by press release americans who don't dig deeper themselves and up getting just one side of the story with some facts amplified and others unexplained or simply left out the media has gone from informing to misinforming the people and. r.t. new york. earlier i spoke to west baker investigative journalist for who what why dot com and author of the book family of secrets he explained his reasoning on why he thinks the media's coverage of the crisis in syria is one sided take a look it's even worse i think than the coverage of libya if that's possible and why do you say that. well you know who what why dot com we've been studying these things very very closely and we find a complete absence of journalistic due diligence essentially just to give you an example i'm looking at a piece from the new york times from today and they quote extensively from an

opposition group talking about how many people have been killed atrocities a military massacre of fifteen detainees or etc etc and then at the end it says these accounts could not be independently verified and that you have to ask the question well what is that worth certainly if the syrian government makes a claim i think those are treated with a real skepticism and really at all ought to be treated with skepticism also i would fly a bit of logic to it and ask why the syrian government would be doing the kinds of things are saying they're doing which really only served to alienate the people on a large scale but that's that's what they said about gadhafi you'll remember where they claimed that he was giving his troops by agro and encouraging them to commit mass rape me to put that out and of course that you're to be completely untrue and ross i do want to point out right now we have a new development that that resolution condemning syria was just passed and as was

expected we all knew that pretty much everyone was on board with this really the only opponents were china and russia i want to ask you how you would contrast how the west how and why the west condemns the syrian regime but kind of turns a blind eye to bahrain and saudi arabia what is behind that. oh well i mean i think that's geopolitics i think all those countries do that russia does china does the united states france britain they all do that i mean it's very important to remember that governments make decisions based on so-called national interest often it's not even that at all it's the influence of powerful corporate interests that fund the campaign so we could keep pulling the camera further and further back to try to see what's really going on in this little tiny stage play we're being presented but the reality is that that it's not about atrocities atrocities has

never been the standard it's about the fact that bashar assad represents a particular faction you might say in the arab world that the west would like to see depart the rest of it it should we should point out you know there as the death toll rises in syria and reports of these violent atrocities do continue to come out that they're being committed there is it getting harder to justify letting it go. well you see again the problem is that we don't know who's committing these things because they're you know by now if in fact it was the military committing a large scale atrocities it shouldn't be that hard to establish a lot of what we're talking about involves say for example sniper fire from buildings where we don't know who's doing the shooting i think to some extent this reminds me of what i saw in romania in one thousand nine hundred ninety when i covered the overthrow there of the dictator ceausescu where there was tremendous

chaos and there were all these different factions of professional snipers firing on civilians but not all necessarily from ceausescu's very very hard to figure out who was behind that and i think my my point here is that we've got to be deeply deeply wary even those numbers we're being told even the numbers that ban ki moon asserts he says that one of his people gives him those numbers well where did she get them whenever i've looked at those things and try to really understand it turned out that they came from very very questionable sources originally and oftentimes there are two sides to a story why do you think that why why is it that the media doesn't really dig deeper and start reporting the full picture of what is going on there and that some of these details are being left out. again i think it's a matter of self-interest and you know that in general i mean the reason i started who what why is because i just didn't feel that the media in the united states were really very good that the people were taking the kind of risks and showing the kind

of courage and independence that needs to be shown in these situations but the reality is that atrocities are horrible the reality is that people everywhere ought to have democracy i mean the biggest advocate of the syrian people having whatever kind of government they want to have the concern here is are we getting accurate information or is this whole thing being played i mean assad and his government have been there for a long time they've been brutal for a long time as you mentioned the saudis the bahraini s. and other governments have been brutal for a long time china certainly commits atrocities on a daily basis in tibet and we don't see the west doing anything about that so i really do think there's a double standard and that's the way the press ought to play it and quickly last i just want to ask you how this kind of coverage in the u.s. media is affecting public perception of what is going on and syria. well you know ordinary people were very busy we don't have time we don't have the historical

background the perspective to understand what all of these things mean to understand that syria is run by a minority. shiite faction in a predominately sunni country that they're aligned with iran against saudi arabia that saudi arabia faces its own poorly covered revolt by in a shiite or oil raising really region these are the big questions and these are really the things that the public doesn't hear about and they need to hear about it because otherwise what we're experiencing is a tremendous kind of mass migration from one viewpoint to another purely based on these very deliberate and calculated propaganda campaign press thanks for coming on the show that was ross baker founder and editor and chief of the who what why dot com. also had a martini want to buy land to ask by see what america's greatest threat might not be by either of the.