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 hey are following in the footsteps of james baker the third and dan quayle the moluccas have private equity field will help him capitalize on his substantial connections and according to bloomberg a former general will be chairman of a new entering the institute focused on macro economic forecast public policy advice on investments in emerging markets and. what we do know that he was in his communications with all the broadwell that got him in hot water in the first place . let's get to what's in your prime interest.

on halloween two 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 our 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 and securities on deposit with m.f. global to secure trades former f.b.i.

director louis freeh he 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 to 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. if you're more for our. program through our work and. everyone. over. here. there will be.

more. for. and there's also a class action suit against a people are getting money and david morgan recently settled can you explain the bank brawl and that's global and what the settlement means talk about. well very simply the development is good news is 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 column you know way in the recovery that is good news was j.p. morgan's role is going to flow as they were essentially on every possible side as a creditor they received customer transfers in the final days of the global. order apparently the word zionist according to cover over half

an hour and a couple of billion. and that's really sort of where the start of customer money. misuse for where they were going to and j.p. morgan is on. all the company how many different. we're going to global. commerce area to count we just savings they should have known that money was coming from customer bosco credit fund and the whole private fund they received it back they drive. drunk or design and is forever signed off on taxpayer. were secured overdraft day and what that all means is that the banks have vested 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. the magnificent. and i think. we're going to be good. and you. are. going to. think that the consumers are being recently i'm saying that here. you know they are 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. do 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 he was basically an absentee landlord as m.f. global just stock so it was the. and so this report and can we expect any bill changes as a result. well i hope that we'll see some changes a figure. plaiting. clearly articulated rules for what happened in britain has been derided but i obviously don't for we why have regulators and experience in the marketplace be dull just walk through all of the capital bill or really little of what we do want people to devise works and investment banks for. a living this second half of that first arise in the future it will need to have clearly articulated moment but when you shoot the brochure who review the results now with the message i was left with just again for a futile does more harm than good enough because that was. 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 justice is to move ahead with the prevalence of prosecution or not and a lot of the stuff comes out but at the end they what it means is there's the regulator approach when they shouldn't be allowed in their bottom line it out of all the companies to go ahead and go into chapter eleven for federal court management is not aware is a shortfall of several exactly it was very clear they were not and they know that shortfall they knew it involved. and then they knew that they were actively working with to try to go into bankruptcy that were getting work so i mean i want to investigation into how it happened and how all the got with the middle man chapter eleven so i know with our invasion when. we we want to be stuck here we've got them

i paid wires to do this by our monetary americans and our last one for feeding and jabbers that doesn't belong chapter eleven and of course a year later. that's exactly what. is the relation firing and you know what people are going to be my hero. you know over here there are you going. you know next. year he may be you know we're back. with people who've got a market here. you know working. 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 dollar 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 the c.e.o. to see was kind of an absentee landlord in those early days and this is 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 protect and if there's another m.f. global can you talk about your plant. agreement that you are. great with very very

critically very very hard. for they were were or. there's a new front property customer file and there's a bug and the bankruptcy because well in the refund run my first customers are then general creditors this is a problem and this is the and then for it was the f.t.c. ninety rules automatically mean disparage the rules are totally meaningless there are no money left in the state got to go to pay back that shortfall for well in ninety nine there was an s.p. underwent a bankruptcy with a shortfall very small fire in phrasing opportunity and the judge rules that existed statutory authority figure in the in making a rule so there's that decision with an event of a agreement particularly about precedent but it's out there and there's

a whole those people say well you gotta fix the priority here but i don't want to bankrupt because you're going to get all these pastries law is involved and all i can maybe some jurisdiction if you didn't know build what is going to be a drag my knowledge of one for one week the bankruptcy doesn't need to be for this particular issue the mexico fully understands the concept of death or if you're secured creditors which you agree hey i'm going to gordon my debt to the stockholders you subordinate or that preside over a stock or we'll get money back or you will so our plan is to put a provision that might expand into active forces nessie or subordinate thereafter suborning all their affiliates to the customer property also forces creditors to work their asses to the customer claims on any debt so maybe what if you have no idea seven or eight years will have more priority that customers. that was john wrote co-founder of the commodity customer coalition and prime interest producer

bob but stay tuned because up next i'm going to air my exclusive interview with from the big conference with train hill c.e.o. jerry and that we get to the top of regulatory environment around virtual currencies and exchange it then bob and i are going to do about a real rock concert in spain. is the west fighting a war without end soon as the enemy and what defines victory in the greater middle

east to carry an ethnic conflicts or see rejecting borders imposed after the first world war the great unraveling of the colonial project in the region and beyond is in play is this the meaning of the west's eternal war. download the official. language stream. and enjoy it. if you're away from. mobile devices you can watch on t.v. any time anyway.

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 client 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. and it depends it depends on the amounts you're trading in one 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. by the 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 are 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 concern and 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 u.s. laws if you have american customers so there are. there are and they're at risk for prosecution by the u.s.

government if they don't comply with u.s. law. well i mean 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 a big point so we definitely compete with them in that area what are your clients look like are 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 d.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 bangs do you see that as a child as well as a more v.c. is getting involved 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 parents to. it's own system that's easily integrated with everything peer to peer lending and back coins 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 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's 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 and all. i don't i don't think they're going to see it as is the threat i think right now they're looking into it 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 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 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 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 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 there you know operating off and things that we really have a global spirit man across the world where do you see this going and you think coin plays as a part in it and. i think. 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 there. you know greece and cyprus to buy big points 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 you know 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 will 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 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 he can just charge them a bit koreans 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 more conserved. cancerian such as germany 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 bond is 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 the floodgate opened 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 until there is a true implosion in the financial new 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 a year because they're still benefiting benefiting from it in certain ways there's a lot of inertia there's a lot of traction and 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 ryan interest and also on twitter.

and bob is. thanks so much. and have been an unfair day on prime interest we discussed the tragedy of m.f. global after john corazon demolished the firm and whiles we have to use the officials turned a blind eye and we dug into the legacy bank regulations which are a century old with better stemming the tide of an invasion and it might not be fair that spanier is good to hear the new jersey rocker on the cheap will everyone else face both right or doesn't think oh sure that general petraeus is cashing in out there is a gamble as communication but hey if you woke up figure 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 of a great thing. the civilized world produces more food. while people die of hunger in other countries. millions of victims every. where remedial is the most. that is. allowed or drink to blame. them it was a bad year without a train that we couldn't do anything with didn't want to do with it all there was

great hunger just terrible. oh is it that help comes too late and without good intentions. charity diplomacy and business want to live. a. little. bit. and. little. and.

live. close. and. to build a new. mission to teach me. why you should care.

the eurozone financial capital. police with attack dogs and water at the ready in case. of political games over chemical weapons in syria raising concerns over the reported arrests of syrian militants with highly poisonous south. hundreds of. and it forced. to share the well.