good afternoon to welcome to prime interest i'm perry and boring in washington d.c. let's get to our headlines. paul volcker made some controversial statements yesterday the x. federal reserve chairman who is most famous for whipping inflation then by raising short term interest rates to twenty percent he criticized pedal to the metal bond buying saying that there are risk of inflationary potential and speculative distortions he also said central banks tend to be slow to remove stimulus no kidding paul but we do enjoy our central bankers talking tough from time to time and don't fret viewers because if you're a former general and cia chief who resigned in disgrace well there's still

a way for you to cash out another revolving door david petraeus has now joined the private equity giant k.k. are following in the footsteps of james baker the third and dan quayle the move to the lucrative private equity field will help him capitalize on his substantial connections and according to bloomberg a former general will be chairman of a new internal institute focused on macro economic forecast public policy advice on investments in emerging markets and communication but we do know that it was his communications with paul the broadwell that got him in hot water in the first place . let's get to what's in your prime interest.

on how we to thousand and eleven the futures and the street was rocked by the failure of a mid-sized brokerage firm which was forced into liquidation and bankruptcy junk or zine a former goldman sachs c.e.o. and former new jersey governor and senator had made highly leveraged bets on european debt with further money as creditors became increasingly concerned about m.s. global solvency they demanded more cash and collateral but when the dust settled one point six billion dollars of customers fines was missing and these were not investors who had decided to risk money on the firm these were customers who simply put cash in securities on deposit with m.f. global to secure trades former f.b.i. director louis freeh who was appointed the trustee over the parent holding company

is suing john corazon and demanding a jury trial something that's pretty unusual for a bankruptcy case i talked earlier today with john breaux co-founder of the commodity customer coalition as well as prime interest producer bob english and i asked john what's the strategy with free demanding a jury trial for corazon and here's what he said. you're more for our. program through our work and. everyone. over. there so it will be kind of.

more. or. and there's also a class action suit against a people are getting money and david morgan recently settled can you explain the bank and that's global and what the settlement means for a possible. well very simply the development is good news in that war money is coming back to the states to customers and it is instead of going to be years and years of litigation with the geisha caused you to weigh in you are very good news was j.p. morgan's role or blow was they were essentially on every possible side as a creditor they received customer transfers in the final days of the global. order apparently ordered by an escort to cover overdraft how. and that's really sort of where the start of

customer money. misuse where they were going to and j.p. morgan was all. creditor all the company how many different our. global. the contrary to the chaos we just savings they should have known that money was coming from customer bosco protected. and a little brighter response they received it back they tried to. draw a court of law and is forever signed off on tax free work. to cure the overdraft self. what that all means is that the banks have best interest and maximizing for congress as a creditor. services and they will lose further than that with recovery for cochran. we think they overstep their bounds and trust the m.f.g.

. magnusson. negotiating with j.p. morgan the max. and i think. we're going to. be good. and you. are. going to. think that the consumers are being recently and i'm saying that here. you know that they're going to get one hundred percent of their money back no and i think john will agree in the early days of after the bankruptcy the customers were just left in the dark and that's one of the reasons why john and james go to is founded the commodity coalition that they did the c c c it's the customers are going to get one hundred percent of their money back but are they going to receive interest on it it's clearly taken a lot longer than it should have and that gets back to the bankruptcy and

liquidation structure and just to get that get to that first second you know the holdings company filed for chapter eleven and that is basically for reorganization and chapter seven would be a liquidation so a lot of people are saying well the holdings company should have filed for chapter seven because at least then the executives would not be able to run the show and they ran the show until louis freeh was put in charge as a trustee and then the broker unit well it was put in a city quickly they should which is for securities customers not futures customers well there's also another name here gary gensler he's the chairman of the c f t c he conveniently recused himself from the entire matter after bankruptcy filing now he did work for goldman sachs and john corazon headed the firm in the late ninety's but according to the c f.t.c. is obvious have inspector general he was advised that he didn't have to recuse himself and that's global's customers were left in the dark and looks like he was basically an absentee landlord as m.f.

global just sunk so what's the significance of this are poor and can we. back to any real changes as a result. well i hope that we'll see some changes if it ever gets. plaiting so clearly articulated rules for what happened in recent years this arise but i obviously don't for we why have regulators despairing when the marketplace we'd all just walk through all of the capitol building or really little of what we do want people to use that device for the work that investment banks for. so little need this. was the very first arise in the future that will mean where we are they going to run but when you do shoot where should recuse yourself now with the best i've had was i was against refutal does more harm than good enough people that with. the inspector general's office well maybe not so much. i don't i'm not sure because we

won't know the full details of exactly what happened in that period there until after one of our adjusters is move ahead with the credit also proficient or not and a lot of this stuff comes out but at the end of day what it means is that the g.m. regulator froze when they shouldn't they allowed as awful as it out of the colonies to go ahead and go into chapter eleven for court management is not where it was a shortfall several exactly it was very clear they were not and they know that short of all they knew it involved bond and then they knew that they were actively working to try to go into bankruptcy that would get work so i mean i want to investigate this and how it happened and how all the got with the middle man chapter eleven because all of you know our innovation west because. we we want to be stuck here has got to my beta wires bought for monitoring services in africa last one for feeding in

a chapter seven it doesn't belong jazzer well and of course a year later that's exactly what the creditors all. you know. there's no regulation firing and you know what people are going to be my hero. you know. there are you going. you know next. year he may be you know we're back. in the. water with people who've got. you know workers. well there is speculation that gary gensler might not get a second term partially due to the failures of m.f. global bob what do you think of all this i think that gary gensler was compromised but not necessarily because he used to work for john corazon and he didn't even work in the same general area scores and so i do think it was a little bit ridiculous it was a cop out that judge that he recused himself now he was working heavily on swaps

regulation at the time and people have to understand that it was a big coup for the c.e.o. to see to be able to regulate a big portion of the seven hundred trillion dollars derivatives industry and that was really his focus i don't think gary gensler really cared about the futures in history that much and that's what we saw when the like you said to see it to see was kind of an absentee landlord in those early days and this is after you see its top regulator and this is out for we out there is a set of fire congress which might open the doors for the opportunity to see change here and you've said you know there is you have enervate of way to to make more customers protected if there's another m.f. global can you talk about your plan to an. agreement that you could go over. your grave with a very very very very hard on that.

they work together. and the safety and the bankruptcy because well in the refund run money for customers are they in general read or this is a and this is the and therefore it was obvious before one nine hundred seventy i mean to say officials are totally fine with their. money with us in the state got a bit of a baggage we're all for well and i think there was an s.g. and a when the bankruptcy with the shortfall very small and free operation and the judge rules that existed statutory authority. in the making of parliament rules that decision with an event of a agreement with a partner is not a precedent but is out there and there is a whole of those people who say well we've got to fix the priority here but they've got to go out of bankruptcy because you're going to get all these pastries law is

involved in a lot of committee some jurisdiction and you didn't know what it's going to drag my knowledge of on for what we were bankruptcy doesn't need to be this particular issue mexico fully understands the best work if you're secured creditors which you agree hey i'm going to work in my debt to the stockholders you said we're going to do that preside over a stock or we'll get money back or you will so our plan is to put a provision of this money forces. sort of subordinate their anchors swarming all their affiliates to the customer also or his creditors that work at their desk to the customer on the desk so maybe what if you have no idea because of orders will have more priority that the customers. that would be john wrote co-founder of the commodity customer coalition and prime interest producer bob english stay tuned because as next i'm going to air my exclusive interview with on the big clean

conference which brain health c.e.o. gary can we get to the top. a regulatory environment around first of all currencies and exchanges then bob and i are going to do about a free of rock concert in spain and here i thought. i would rather as questions for people in positions of power instead of speaking on their behalf and that's why you can find my show larry king now right here on r.t. question more.

i. was a new alert and if scripts scare me a little. there is breaking news tonight and we are continuing to follow the breaking news. alexander's family cry tears of joy and it is great thing. that there has to be either brand or at the core of what i found online is a story. playing out in real life. when

i visited the twenty third team conference in san jose i had the opportunity to sit down with jared khanna the c.e.o. and founder of trade hill which is the first u.s. big going to exchange platform as you may know virtual currencies are entering a dense regulatory environment here in the united states i first asked mr ken what are the f.x. federal and state regulations and know your customer laws are having on his exchange. server and it depends it depends on the amount you're trading and what not a trade deal we're really focused on compliance that's that's our priority so we don't do any trades unless you verify your identity with us you can come to our office in san francisco and verify in first and we have a notary that can make a copy of your identification or we can use online services as well what are the

regulatory requirements to operate an exchange outside of the u.s. but u.s. customer and so. it depends once again on the state but. federally you're supposed to register even if you're operating in another country and for example city california if you have employees are should say officers in california if you have service banks or customers in california you need to register with california so they don't operating outside of the country is not it is not an excuse as far as the u.s. government's concerned and even if you are registered for example with f.s.a. in in the u.k. they are still going to want you to comply with the u.s. laws if you have american customers so there are options exchange if. there are and they're at risk for prosecution by the u.s. government if they don't comply with u.s. law. what i mean is based in japan. and they were just they just had fun seized by a department homeland security and there's other exchanges that are operating in

europe and south america as well. as now cox having serious competitor i know now they're facing off for the challenges but i guess maybe before the seizure and it may have any serious competitors in the markets behave. i think they've got about sixty percent of the market give or take right now so there is some some pretty serious competition from from bits stamped trade you know we we deal with high net worth individuals and people are looking to buy and sell large amounts of bitcoin so we definitely compete with them in that area what are your clients look like are in what it was the demographics of your clients most of them or individuals that want to make high risk investments or hedge against their currency risk with you know the dollar or the euro so it varies from you know some some libertarian types that you know want to put you know fifty thousand dollars into it or the other day i had a billionaire walk in and he said how much can i buy ok you know he said you know

can i put five million in here and just he just wants to get away from the dollar. are you saying that as a trend oh yeah for sure the seas are jumping all over this b.c.'s they're used to high risk investments with high returns you know you look at you know if you if you got into facebook years ago you knew it was either going to be a big success you're going to see this huge return or you're going to lose it all and they're trusting other accustomed to seeing giant returns or losing their investment. how do you feel about peer to peer lending and some of these social lending banks do you see that as a child as well as in more v.c. is going on in these types of. investments as well i think i think that's going to continue to grow and i think i think that coin helps enable that because you don't have to go through traditional banks to its own system that's easily integrated with i think peer to peer lending and back point i mean i think you can say some of the same challenges of having to deal with all the state regulations and are you

guys working together at all with the critic you're living talking to and yeah not any specific company now can you see any correlation between the two. for sure i mean they're both the roads emerging technologies that enable people to really you know control their finances you know in ways that we're not we're not accustomed to normally when you when you want to move a large amount of money you go to the bank now you can use because when you want to loan money to someone normally you would go to the bank so you can bypass the entire thing. is wall street or city of london any of the big banks are they entering that bank marketplace at all. not that i'm aware of there is there's i have talked to senior people at banks that find it really interesting and they're definitely looking into it and they're really trying to decide what they're going to what they're going to do but banks are traditionally very slow to move on on things like this do you think they see bank points as a right at all. i don't i don't think they're going to see it is

a threat i think right now they're looking into it and to see to determine actually how you see. well it is for for criminal activities and you know if it's something that they can control when i when i talk to the banks they look at it they say you know how well can we trace back the path of this money the source of funds and whatnot so right now they're just they're just studying it trying to figure out exactly what is good is good for and if we did start to see some of the big banks enter into this marketplace way areas you think they would emerge and for. more investing and big point there and maybe a company or i would i would i would think that they might use it for international settlement initially because it's a it's a much easier system to settle between banks they could piggyback on the top of it they don't have to necessarily actually send coins but you're talking about changing a system that's been around for one hundred years you know it's the wires or you

know based off telegraph you know this is this is nothing banks are you know materially slow to change so. i think the first thing you're going to see is some some venture arm of the bank is going to kind of you know put their feet in water and with with the company and you know get involved with it invest in it first are going to you know offer you know secure secured banks like our i'm sorry solid account relationships with big stars i think that's how they're going to get they're going to it's two different for a bank to adopt it they're going to have to just get involved with start ups and have talking about this mines here and that's one of the big banks they're. operating off and things that we really have a global spirit man across the world where do you see this going and you think a coin plays a part in it and. i think. with with what's with what's been happening in countries like cyprus it brings a lot of attention to decline i don't think there's a lot of people who are fleeing you know greece and cyprus to buy big coins but

what it did is it really brought it to the forefront and it really showed people that there is. an alternative that they can't just tax you want to just remove your funds so i've had a lot of people that aren't from greece or from cyprus but they look at it and they say that really scared me now i want to i want to look more closely. and that was my interview with gerry the founder and c.e.o. of trade how. it's time for the daily deal this is perry and tell me why you see bon jovi in my notes explain this ok well one of the recession hit countries in europe us rock

band bon jovi is essentially going to play a free concert in madrid spain so spaniards can afford to go there because we can organize originally have left spain off the tour list because they fear they would not be able to fill all the seats with the hiring of unemployment so bon jovi just said he would sell the tickets at cost to his spanish fans but i don't know if this is fair to the other countries in europe have to pay full price for their tickets while spain is getting out of anything i guess it depends on how much you like jon bon jovi i mean what do what is he going to do if he goes to cyprus maybe you can just charge them. but i think it speaks to a larger problem in europe which is kind of structural the way the currency system is set up in the fiscal system is set up i mean what do you think well i think this brings up you know other issues in europe where the more conservative countries such as germany are having to live within their means while all the pigs are benefiting from the inflationary measures so we're talking about portugal ireland

italy greece spain etc but these countries are part of our. of a unified monetary system but they don't have a fiscal core in other words all the things that the governments do to pass regulations that governments have their own bondage showing systems they're not coordinated so they have this problem that is developed over time where the pigs the so-called pigs i like to call them the club med states they can borrow at german rates they can borrow at very low rates and then they can spend that money so there is a structural problem here but is the solution really trying to create a politically unified europe i mean what they could do is just go back to their own currencies and that's really the issue that we're talking about well that brings up another issue in portugal where some economists are starting to gain traction in calling for their own currency and then the book why we should leave the euro made the best sellers less important all but leaving the euro was a very taboo issue in portugal this book has helped spark a public debate. it's been debated in greece and the thing is if one state

pulls out of the euro there's going to be a floodgate the powers that be cannot afford to have that flood gate open so there's going to be a tremendous amount of pushback i don't care how many books you sell in portugal you're just not going to be able to gain traction and told there is a true implosion in the financial news financial crisis and we haven't seen that yet and there was a poll taken in portugal is that only twenty percent of the people support pulling out of here because they're still benefiting benefiting from it in certain ways there's a lot of inertia there's a lot of traction and like i said things have to get worse before they get better well thanks for joining me bob if you want to follow us you can follow us on facebook at facebook dot com interest and also on twitter at perry an artsy and. english. thanks so much.

it have been an unfair day on prime interest we discussed the tragedy of m.f. global after john corazon demolished the firm and while so you have to use the officials turned a blind eye and we dug into the legacy bank regulations which are a century old that are stemming the tide of an invasion and it might not be fair that spaniards get to hear the new jersey rocker on that sheeple everyone else pays both price there is nothing kosher about general petraeus is cashing in out there and gambling communication but hey if you look up fair in the dictionary you won't see any reference to life so get over it they were watching come back tomorrow and perry and boring it's prime interest of a great. old

. technology innovation all the developments around the show we've got the future covered. wealthy british science. is not tied to the tireless.

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coming up on r t attorney general eric holder has seen better days the justice department's tracking reporter e-mails has soured relations with the press now there are calls for eric holder's resignation as a result of at some of his past decisions ahead has monsanto struck again the federal government wants to know how unapproved genetically modified wheat gone into an organ field more details later in today's show just days after president obama's speech on u.s. counterterrorism tactics to launch yet another deadly drone strike inside pakistan so what does this mean for his drone policy moving forward will explore that issue today.