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 and turn the institute focused on macro economic forecast public policy advice on investments in emerging markets and. what we do know that it was his communications with paula broadwell that got him in hot water in the first place. let's get to what's in your prime interest.

and how we need to thousand and eleven the futures and the street was rocked by the failure of a midsize brokerage firm which was forced into liquidation and bankruptcy junk or zine 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 was missing and these were not investors who had decided to risk money on the firm these were customers who simply put cash and 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 junk or zine and demanding a jury trial so. 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 three demanding a jury trial record and here's what he said. life is very simple you. describe is the director much better. with the drew. a jury is much more asked very simple. to the programmer are right and i think that's exactly the strategy. that there's a master i do think. there's debris in the trustee that is handling the creditors while the company customers are. merely adds and the full truth from you. will be kind of at odds with disagree on this because he's going to try to get a recovery or creditors were fired because the more coverage. damages for flying.

and there's also a class action suit against a.p. morgan and one other areas and a b. morgan recently settled can you explain the bank's role and that's global and what the settlement means for a possible. well very simply the development is good news in that more money is coming back to the states to customers and if you instead of going to be years and years of litigation with the geisha cause you to weigh in the recovery and see the new j.p. morgan's role is going to blow they were essentially on every side as a creditor they receive customer transfers in the final days i'm a little. bit word by mr gordon to cover overdraft. and that's really sort of the start of customer.

money. misuse for where they were going to and j.p. morgan is on. all the economy how many different. we're going to global. the contrary to count we just savings they should know that money was coming from calmer. and a little brighter. they drive. drunk or design and is forever signed off on. the kia that is over half our day and what that all means is that the bank is interested in maximizing for congress as a creditor. services and they will put it in the. recovery coffers. we think they overstep their bounds and trust in the. magazines. and go shooting with a few more hours to maximize recovery. and i think

a class act that is the right. along with the base and does anybody any good except for my facts are the ones you make out with. not a customer those quick and easy going dollar that we could possibly hope for i think the legal fees are going to be in the range of eight million by kind of that for more about that because rates are being recently compensated here well. they're going to get one hundred percent of their money back now 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 a sound of a commodity coalition that they did the c c c and it's the customers are going to get a 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 the. 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 the 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.s.a. you see as 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 c.f. d.c. was basically an absentee landlord as m.f. global just sunk so what's the significance of this report and can we expect any

real changes as a result john. where . there are obviously you know we want to hear your views in the market but if we don't. we're one. device for you. there's. really. no. more good. well maybe. i don't. know exactly where i am. until

after. justice is move ahead with the criminal prosecution. and a lot of the stuff comes out but at the end of day what it means is the regulator froze when they shouldn't be allowed as vice pointed out all the companies to go ahead and go into chapter eleven for better or management is not aware of all seven days after it was very clear they were not and they know that you were involved they knew it involved. and then they knew that they were actively working with trying to go into bankruptcy work so i mean i want to investigate happened and how all the government man chapter eleven was all of you know our innovation when. we want to be somebody here has got to my paper wires from all the very purpose of our last one for feeding into chapter seven it doesn't belong to everyone and of course

a year later that's exactly where the creditors are holding up what we're part of it seems to just get the liquidation nominated and dividing and you know when people get a big money here or there. i think of the fifty states they will articulate. the process by which product works and then just. you know the next share first with the f.t.c. maybe numbers that were relevant back right and if that is the case that's wonderful with people who've got experience in the market make sure your conflicts arise we know. well there is speculation that gary gensler might not get a second trial partially due to the values and that of all bob what do you think of all day i think that gary gensler was compromised but not necessarily because he used to work for john cores 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 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 dollar derivative industry and that was really his focus i don't think gary gensler really cared about the futures and it's true that much and that's what we saw when the like you said the c.f. to c. was kind of an absentee landlord in those early days and if they have case a pop regulator this is up for reauthorization if either congress you know which might open the doors for the opportunity to see change here and you've said you have an innovative way to to make more prosperous protected if there's another and that paul can you talk about your plan john. we recommend first and foremost the guy says issue there's agreement between the different that together governor money for bankers. are made with a very very simple basically there's two bags and one for the laws that govern mining program for when they work together we're going to group it was just going

from the problem. and the safety and the bankruptcy because the well in reality is we're going to run the money for customers are they in general records. and the and therefore it was the f.t.c. ninety one that might be going to say gets through her own review. any money left in the state got to go to pay back that shortfall for well and i'd be ninety nine there was an se underwent a bankruptcy with this were all very small and praise nominees and the judge ruled the p.c. existed statutory authority. in the making of rules that if it was an investor is a agreement with the partner about what is out there and there is a hole those people say well you gotta fix the priority here but they've got to go on record because you're going to get all these pastries law is involved in a lot of committees and are going to get. we're going to be. on

well we are back. but we. were. you agree you were reminded of. the we're going to. get money back or you were so are. my. subordinate and we're going all. the creditors. maybe with nobody. more priority. that was john wrote co-founder of the commodity customer coalition and prime interest producer bob stay tuned because up next i'm going to air my exclusive interview with from the big conference which train healthy. and that we get to the

top of regulatory environment around virtual currencies and exchange ads and bob and i are going to do about a fleet of rock concert in spain that. is the west fighting against the war with the enemy and what defines victory in the greater middle east terry even ethnic conflicts or see rejecting borders imposed after the first world war the great unraveling of the west neocolonial project in the region and beyond is in play is this a meeting of the west's eternal war. you've said i'll teach you to channel rockets into a billion viewers from the wills era defined as two events that continue to change

join me kevin owen for more on how you've helped make the first global news channel to reach you chub. yeah but. if you. are the.

when i visited the twenty thirteen point conference in san jose i had the opportunity to sit down with jerry can the c.e.o. and founder of trade hill which is the first u.s. big going exchange platform as you may know virtual currencies are entering a dance 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 amounts you're trading in one trade deal we're really focused on compliance that's our priority so we don't do any trades unless you verify your identity with us you know 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 ins 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 servers 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 even if you are registered for example with f.s.a. in the u.k. they're still going to want you to comply with the u.s. laws if you have american customers so there are. there are there are 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 the department homeland security and there's other exchanges that are operating in europe and south america as well. does now cox having serious competitor i know now they're facing off for the challenges but i guess maybe before this seizure and that they have any serious competitors in the market space. i think they've got about sixty percent of the market give or take right now so there was some some pretty serious competition from from bit stand trail 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 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 seeing that as a trend oh yeah for sure the seas are jumping all over this v.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 and are 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 bangs do you see that as a child as well as a more v.c. is going on the inside. investment 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 print to it it's own system that's easily integrated with everything peer to peer lending and back point i mean i see you guys face some of the same challenges of having to deal with all the state regulations and are you guys working together at all with the critically living talking to people and yeah not any specific companies 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 useful 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 and 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 and trying to figure out exactly what is good and isn't 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 their coins are in 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 or you know the tory slee 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 is kind of you know put their feet in water and with with a big company and you know get involved with it invest in it first to get a you know offer you know secured secured banks like our i'm sorry solid account relationships with bitcoin starts 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 i'm talking about this mines here and that's one of the big banks they're. operating off and things like we really have a global spirit man across the world where do you see this going and do you think they coined plays a part in it and. i think. with with what's with what's

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 on the just remove your funds so i've had a lot of people that aren't from greece and are from cyprus but they look at it and they say that really scared me you know now i want to i want to look more closely. and that was my interview with jared cannot the founder and c.e.o. of trade how.

and it's time for the daily deal of it 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 to our 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 the 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 what do you think i guess it depends on how much you like jon bon jovi i mean what do what is he going to do if you go 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 the you are part 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 bonded 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 that. 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 year old there's going to be a floodgate the powers that be cannot afford to have the floodgate 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 trolled there is a true implosion in the 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 the year because they're still benefiting benefiting from it in certain ways there's a lot of inertia there's a lot of traction. things have to get worse before they get better very well thanks for joining me bob if you want to follow us you can follow us on facebook at facebook dot com prime interest and also on twitter at perry an artsy

and bob is english. thanks so much. and have been 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 when 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 the cheap will everyone else fails. price there is in co sure that general petraeus is cashing in out there scandalous communication but hey if you look up player in the dictionary you won't

see any reference to life so get over it they were watching come back tomorrow and parry and boring it's prime interest rates. played in a family jazz band together. hijacked a plane together. from music to tara. twenty five years old questions still remain. low. just bad hijack. a plane.

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lend. legitimacy . clinton. told her my language or what i will only react to situations i have read the reports to the players or the no i will leave them to the state department to comment on your letter play like the muslims say it's a hit list or k.l.a. car is on the docket. they get no more weasel words when you vain a direct question prepared for

a chase when you have to punch be ready for a battle freedom of speech and a little bit on the freedoms of past. chemical

weapons are reportedly found in the possession of syria. in turkey as concern to growers of the rebels we use the nerve agent to create a pretext for foreign military intervention. the hunger strike at guantanamo bay prison shows no signs of ending despite president obama's promise to speed up its closure archie talks with the father would you take me up on how his son's condition has deteriorated. and the blog of a new launches a legal battle against bridge and benefits was. a house crumbles with parents refusing to.