on twitter at sam sachs for now that is. well. science technology innovation all the latest developments from around russia we've got this huge you're covered. here's mitt romney trying to figure out the name of that thing that we americans call a dollar. i'm sorry i'm just a guy who cares enough about what you saw our little you know what that is my other terrorist cells but i don't want to wish to defeat terrorism the only liberal democrats. can usually. you know the corporate media

distracts us from what you and i should care about because they're profit driven industry that sells a sensationalistic garbage he calls it breaking news i'm happy martin and we're going to break this but it's. close. and it's time for what's in your prime interest i'm harry and boring and i am bob english let's get to today's headlines. eric holder u.s. attorney general is cracking down on wall street well according to himself and a he said anybody inflicting damage on our financial markets should not think they're out of the woods well there is a small problem with something called the statute of limitations and it's run out on a substantial number of criminal acts committed both before and after the last financial

crisis unfortunately it seems the only people being prosecuted these days are mid-level employees and hedge funds and that would be for insider trading and while it's certainly a crime insider trading did not cause the last financial crisis nor will it cause a future one i discussed this issue with gary geary as you see whistleblower in just a minute and sam sachs presents the psychopaths like wall street. culture later in the show and i will dig into the fine print of a whistle blowing up and tell from daniel ellsberg and the pentagon papers that right up to bradley manning the deadly sins to thirty five years in prison today may serve as new as eight additional years for all the while to gary if they could have been much worse so perhaps the government and that they're more concerned about the issue than. hypocrisy has reached new heights in india only days ago the prime minister of india announced that there would be no new currency crisis not

like the one that happened in one thousand nine hundred one anyway anyway overnight the reserve bank of india basically india's fed announced a new quantitative easing program so welcome to the club india good luck. and here's what's in your prime. we've been talking about whistleblowers and as promised we have a compelling story of one at the securities and exchange commission in two thousand and five garia geary was senior counsel there he investigated a case involving insider trading at a major hedge fund this would be quite capital management and after

a little digging guess what it became apparent that the soon to be c.e.o. of morgan stanley john mack was involved now matt happened to be a major contributor to george w. bush and mr geary supervisor warned him that mack was untouchable due to his political connections so peak watts attorneys met with as you see director of enforcement and the result of the case would be the first narrowed and then next testimony. was delayed so the statute of limitations which we've been talking about for mack eventually ran out and mr geary complained he complained about political clout and this was a big mistake because he was promptly fired for it earlier i spoke with mr geary about his experience here's what he had to say. was fired. the senate finance committee and the senate judiciary committee heard about the firing and heard about the investigation the senate opened an investigation of the f.c.c. that went on for eighteen months. in august of two thousand and seven the senate

issued a joint report by the two committees the two committees found that the f.c.c. . had given deferential treatment preferential treatment because of his status as a prominent wall street member of the elite and because i had pushed back after i was told that you know we he was off balance i pushed back to take his deposition as testimony and that was the cause of my firing according to the two senate committees. have been dictated by this that at least there was an investigation. well. it wasn't the mere investigation but the result led to the good cation there was a senate report of one hundred eight pages which concluded that that that i had been fired because of. my effort to. appropriately take the

testimony of a c.e.o. of a wall street firm there was a court case which concluded that the f.c.c. it and acted improperly there was. the n.s.c. see i.g. investigation which recommended that my supervisors be disciplined for their conduct and then i settle with the c c. time for the largest settlement. ever reached by a federal employee arising out of a whistleblower claim ok at the case i think the probably the key in terms of vindication is that i after i left the f.c.c. i put together the rest of the case and submitted a letter to the c c describing why they should reopen the investigation they reopened it charge they had fun. as a hedge fund settle for twenty eight million dollars and collapsed well it sounds

like a good story there but let's move on because there was insider trading in the news recently and there have been a lot of investigations it seems almost like a lot of media hype what's your view on the way the f.c.c. has pursued insider trading since your case. well. back in two thousand and five in two thousand and six hedge funds were running amok. there were no cases no investigations the f.c.c. had basically. had me but wasn't even tracking what was going on so in two thousand and five when they terminated the investigation. that decision basically i think invited hedge funds to continue insider trading. even on a broader scale because they could see that the f.c.c. was not enforcing it as a consequence of the senate investigation in two thousand and six and two thousand

and seven a crackdown started on insider trading especially by hedge funds and i think it made sense in two thousand and seven two thousand and eight the cases began to be filed in two thousand and nine and two thousand and ten. and eleven but we've reached a point now where the crackdown. has gone beyond the needs of law enforcement at least in my judgment and has sort of got a life of its own why are we watching the you know why don't we sooner or later write down on some of the major players hedge funds were not even a proximate cause of the panic of two thousand and eight how come we're not seeing more attention on people like john corazon and jamie diamond i don't know some of the bigger players. well that's that's an excellent question. the country was on the edge of an abyss in two thousand and eight and we all know. the wall street

banks took us there unfortunately there has been no prosecution of any major executive of any of the wall street banks exactly spite the fact that. they delivered the crisis and it is cost the country trillions of dollars and. triggered a financial recession which is i think is still ongoing what i think is happened is that the media has essentially taken a head fake from the government the government claims it's cracking down on wall street but there is a non sequitur is there. government is cracking down on insider trading but insider trading really had nothing to do with the financial crisis of two thousand and eight so in a sense the public is being a p.s. dissuade by this apparent crackdown by the f c c and the u.s.

attorney in new york and the in the media is running with the u.s. attorney for the southern district it was on the cover page of time magazine is the guy cracking down on wall street but it's not a crackdown on the real problems that gave us the financial crisis those guys are walking away jamie dimon is walking away dick fuld is walking away and those guys are walking away with their pockets stuffed with hundreds of millions of dollars and the only thing that does is invite wall street to do an encore well let's talk about stuff in pockets here because a lot of the lead people at the as you see whether it's mary jo white or mary shapiro have been through this revolving door and mary shapiro just joined problem tory financial group there is a there is a corporate culture there i guess the regulatory culture that seems to encourage people just to cash out and is there are just some parent conflict of interest in

the very structure at the i.c.c. especially. well i think there is i think the se c. defends its hiring of wall street players wall street attorneys on this theory that they're the only people that understand the securities laws securities laws aren't that complex smart people can figure them out criminal lawyers prosecute all kinds of cases and they don't have to be an expert in any single territory of the criminal law what happened for example recently with robert kusama. mr kusama who was there he was an integral part of gearing up his crackdown on insider trading and brought. i think he claims something like one hundred fifty cases against various parties for insider trading and i'm reading that those investigations are ongoing it pundits of people they expect for these cases to be filed over the next

five years are you going to have got a backlog this thing that this the system is now is almost running on automatic control and investigating and kicking out these insider trading cases well at this point mr coo saami jumps from being the enforcement director to the other side door to a bank now well no he goes back to a private law firm now you might think. is there a connection there you've geared up insider trading that's going to run for five years and then you go to the other side and join a law firm that represents individuals and companies that are being sued or charged with insider trading so you in a sense you've got in and he took a five million dollars starting position there. the work is cut out for him over the next five years because it's already been geared up at the c c this world valving door operates you know across the s.c.c.

it's not just in the division of enforcement it's in the general counsel's office it's among the commission it's in each of the divisions of the s.c.c. they're constantly rotating in and out of the other side and when they leap from the se c. into private enterprise they take their rolodexes with them they usually get you know anywhere from mr to sammy's case. his income. something like twenty two hundred twenty five hundred percent twenty five times he was making two hundred thousand there he goes to five million a year outside the see see now when you're inside the s.e.c. and then a two hundred thousand dollar a year job maybe you're making ins ends meet living in washington your kids are going to private schools or what have you at some point you start thinking about that five million dollar job and how cushy it's going to be and that's what happens i think it happens while people are at the f.c.c. they start planning where they're going to land when they get on the outside they

take all their connections with them they go into private practice and they're set up in private practice to call back to the c c to their former subordinates to get favors. that was my interview with gary gary securities fraud attorney and former f.c.c. senior counsel now we will post the full interview online at youtube dot com slash the prime interest and we talk about why records of preliminary investigations were so. destroyed as a matter of practice was it to protect the big names on wall street spoiler alert yes because we also talk with mr a gary about one of his current whistle blowing clients that would be darcy flynn now mr flynn was helping to manage as he sees records and he found the f.c.c. was destroying records the practice of destroying investor could files has been going on since one nine hundred ninety three mr flynn alerted the authorities at the national archives and then the white wash began there's also a revolving door in shadow regulatory stuff so check it out and coming up period

digs into the fine print of whistle blowing and just how the perception of these individuals has changed over the decades from ellsberg to manning finally billion dollars regular stand sacks will battle the question of whether wall street culture is a systemic or simply psychopathic stateroom. one of. these policies i think people. should have you with us here on t.v. today i'm role receivership.

the perception of whistleblowers has changed over the past several decades some of the most famous of our time have exposed government scandals misuse of taxpayer funds and fraudulent schemes but today's was a blowers don't have much recognition from members of congress or the government let's take a look into the fine print of whistleblower history we'll start with daniel ellsberg he was a us military analyst who exposed the famous pentagon papers he leads

a department of defense study that showed the american people had been misled about the vietnam war ellsberg risked his life in prison to stop a war that he helped plan of course his colleagues vilified him but today since the papers have been released in their entirety he's been held as an american hero moving on we have mark felt he was the f.b.i. whistleblower who exposed the infamous watergate scandal however he held he had his identity from the public until two thousand and five also known as deep throat he was the secret informant that found president nixon's wiretaps in the d.n.c. headquarters at the watergate building information to carl bernstein and bob woodward of the washington post you know the story he this eventually led to the resignation of president nixon all of these men are held as heroes then and now

next we have a john m. gravatt he became the first person and forty years to file a lawsuit under the false claims act as a foreman at g.e. aircraft engines he exposed that the government contractor was charging the government millions of dollars for work that was actually spent on commercial projects. he was laid off by g.e. after blowing the whistle but he received a hefty settlement thanks to a bill passed by president lincoln and thanks to john grabbe that congress passed additional legislation that made it easier for more employees to see or under the false claims act millions more have been recovered in government contracting fraud cases sense although seen in positive light he did not get much press out of the event as you can see we can even find a photo of him now into the twenty first century and the perception of whistleblowers has changed quite a bit first we have a sherron watkins' she was the vice president of corporate development and ron and helped uncover the company's fraud and this led to one of the largest bankruptcy in

u.s. history several executives ended up in prison watkins however was initially praised she was heavily criticized for not speaking up fast enough and took her five months from the time she wrote the whistle blowing memo to release it to the public in two thousand and one and quickly going down the hill we have gary geary's story which you just heard he was an f.c.c. whistleblower and was eventually fired after highlighting that these unwillingness to prosecute under insider trading he was eventually vindicated for his wrongful termination but many americans have never even heard his name. and today we have bradley manning and edward snowden both have lead to classified information about questionable questionable government programs but the government doesn't even consider them whistleblowers. i don't think mr snowden was a paratrooper as i said in my opening remarks i called for

a thorough review of or surveillance operations before mr snowden may be. my preference and i think. the american people's preference would have been for a lawful orderly examination of these laws a. thoughtful fact based debate. there would then lead us to a better place. president obama says snowden should be brought back to the u.s. to be charged as such legal experts say the whistleblower protection act does not apply to him because he was a government contractor not a government employee however fifty five percent of americans consider him a whistleblower and only thirty five consider him a traitor bradley manning was sentenced to thirty five years in prison today under the espionage act for leaking classified american information but there are some

who consider him a whistleblower and save the result of his trial will make it difficult for the american people to hold their elected officials accountable when the government calls him a traitor who aided the enemy we can see that the way we perceive someone who exposes misconduct alleged just honesty or illegal activity has changed throughout the years but in the past decade there has been a sharp change for those who tried to expose any government wrongdoing during the same time the government's budget dead and rates have also increased unable in more surveillance and more crackdowns on whistleblowers to cite despite statements to the contrary it will be interesting to see if there is a correlation between the government's growth and cases filed under the espionage act it's.

about one in twenty five business leaders is a cycle. path now that is according to a study conducted by psychologist paul. these are psychopaths who lack emotion but use charm and manipulation to advance their careers earlier political commentator sam sax looked into whether these psychopaths are naturally attracted to wall street or is it the work environment that creates them. i know my pager can be theoretic sometimes oh. yes this is just a movie about a psychopath the banker really we all know there's something a little off about wall street given recent behavior even the financial times wonders surely only someone with a serious personality disorder could have thought it was a good idea to sell

a highly risky financial instrument like a city or squared to a naive investor who clearly did not understand the risks or would react with anger when told that they would not be paid multimillion pound bonuses because their previous bets had gone so badly wrong that their employer had to be bailed out by the taxpayer and we also have the patrick bateman ask headlines as you hear about the banker who is screaming racial slurs and strangers and got knocked out on the street or maybe the bankers who have cocaine fueled meltdowns were not the banker who stabbed the cabbie so what's behind this dr alexandra michel studied a group of bankers for more than a decade what she described was a factory on wall street that grinds people up and tosses them out during what i've found is that after approximately four years the picture changes performance declines not on technical skills the bankers are still superb as far as technical knowledge but creativity declines judgment declines i think

a sensitivity could declines at about four because not surprisingly the body breaks down it's believed one percent of the general population is psychopath think so. when we say wall street actually has a higher percentage dr me show wasn't willing to go that far i would say for now there is no evidence to support that kind of claim fair enough but i also had to talk to some former wall street insiders people you may refer to as recovering psychopaths alexis goldstein spent seven years on wall street she describes the culture it's a complete lack of empathy and it's really all about being instead of an aisle as you can be and having enough money and enough power so that you can basically behave however you want and treat people have or you want the proper term for it is you money richard usko work that is gee there were times in my own work life where i had had to stay awake for seventy two hours to get a project and so

a colleague or two two or three of us would get together and we'd stay up for three nights and we'd be drinking and we'd be using substances to keep going so we got pretty crazy but we did it because we were being encouraged to do it by this situation so were we psychopaths i don't think so i think we were people under enormous pressure or not through yet it always seemed that wall street was the place where the psychopathic among us could not only take refuge but flourish but it appears more complicated than that so i think it all speaks to breeding a group of people that are very predatory in the way they pursue money and yes psychopathic is one where they could be used and i think the more that that happens the more that that culture starts to attract people who have those personality carrick's characteristics to begin with so i think it's all of the above it's nature it's nurture whatever the reason for the perceived psychopathy emanating from our nation's financial district this should concern us all it's the fire

economy finance insurance and real estate that is making up a larger and larger portion of our total economy and understanding who's running this industry might explain why wall street has been preying on the rest of our economy from homeowners. to oil consumers to most recently aluminum purchasers but in the end what can we do about it sure we can pass more regulations we can pass legislation like glass steagall to try and limit the damage that wall street bankers can do but really how do you legislate away psychopaths we have to stop lionizing people like for example jamie diamond the c.e.o. of j.p. morgan chase i think we have to make it culturally shameful to exhibit psychopathic behavior and we're not going to be able to legislate our way around this but we can have a culture shift and i think the one thing that wall street is vulnerable is to is shame wall street is vulnerable to shame occupy prove that so in a way the occupy movement was just trying to hold an intervention for the bankers unfortunately wall street and its friends weren't ready to listen and they likely

won't be ready to listen anytime soon as long as all that if you money keeps flowing in. in washington observing wall street from a very safe distance. r t. what was a day over you guessed it was a willing and hypocrisy prime interest began mr holder who says he's finally going to crack down on our wall street was as we mentioned at the clock is running out not only on his attorney general ship from the crooks who precipitated the financial crisis in the first place and carry a giri didn't hesitate to blow the whistle on his one like employee and employer

that would be the f.c.c. and the you really have to go there and feel there's no place on earth that's not afraid to debate and already ravish currency thanks to an out of control central bank and finally we tracked our favorite whistleblowers beginning with those pesky papers from the pentagon right through and manning and snowden well thanks for tuning and we'll be back tomorrow with more from everyone i'm prime minister and i'm terry and boring and have a great. little worse you're the only one of the day.

what. have you never seen anything like this. you know how sometimes you see a story and it seems so for langley you think you understand it and then you glimpse something else you hear or see some other part of it and realize everything you thought you knew you don't know i'm tom harvey welcome to the big picture.

today on larry king now dane cook let's come again i goes under all the fun is doing to or you want the truth from a comedian you want us to go out there and be as blunt and honest and kind of say the thing that's on everybody's mind i knew going into that day that it would probably be one of the most emotional days sort of returning to where my career started where i grew up plus i tell performers do not google yourself google other people you would mire and read the crap about bam and you'll feel better about yourself all ahead on larry king now. welcome to larry king now actor and standup comic dame gup he broke records with the double platinum album retaliates in the highest charting comedy album in three .