corzine aware of those requirements? >> i would be speculating but i would imagine he would be unaware of those requirements. >> how about laurie ferber? >> and i would imagine she is, too. >> what involvement did ms. ferber have with risk management and compliance functions in the glory didn't have significant involved in the risk management function. >> was she aware of him as risk positions, and the use of segregated funds to? >> i couldn't speak specifically to what laurie may have known. did she mention i have access to control sheets for risk positions including repos for provider positioned and counterparties? >> i'm sorry, could you say that in? >> did she maintain or have access to control sheets for risk positions, including repos, proprietor positioned and counterparties? >> i don't know. >> was j.c. flowers a trading counter party with mf? >> i don't know dick since j.c. flowers was aboard number an investor and jon corzine was deployed by j.c. flowers, until, wouldn't that be, in your opinion, as an extra $3

corzine aware of those requirements? >> i would be speculating but i would imagine that he would be aware of those requirements. >> how about lori ferber? >> and i would imagine she is, too. >> what involvement did miss ferber have with your risk management and compliance functions? >> lori didn't have significant involvement in the risk management function. >> was she aware of mf's risk positions and the use of segregated funds? >> i couldn't speak specifically to what lori may have known and -- >> did she maintain or have access to risk positions including reposs, counter positions and counterparties? >> i'm sorry. can you say that again? >> did she maintain or have access to control sheets for risk positions, including reap pose, proprietary positions and counterparties? >> i don't know. >> was j.c. flowers a trading partner with mf? >> i don't know. >> since j.c. flowers was a board member and member of mf and jon corzine was still employed by flowers, as an expert in your $350 thor,000 a experience, wouldn't that be

corzine is involved in? >> ma'am, for example, in the august 4 report, it was clearly highlighted, excuse me, in both written and verbal presentation to the board and senior management as an example the increased risk in the marketplace overall from the summer of volatility. number two, widening credit spreads. number three, increasing probabilities of default. number four, lowering liquidity in the marketplace. and importantly, number five, in particular, the increasing stress -- >> so in essence, you felt you did your job? is that right? >> that's correct. >> and there's nothing that you would have done differently? >> ma'am, obviously, let me say with the benefit of 20/20 hindsight, there are things we would have done differently knowing what we know now. >> my time is over, i yield back. >> we thank the agengentlewoman. >> mr. stockman, i'm over here on this side. >> okay. >> and, again, looking at all the questions you're hearing and getting, you're probably starting to get to understand that mr. rosema

corzine. i expressed my cautions on the request, outlined potential capital risk by the credit default swap market. along with continued political and financial uncertainty in relevant countries. while mr. corzine and i had different views on default risk we agreed on a $1 billion limit across sovereigns. by mid september i recall that the position limits increase $15 to $2 billion. during this time period i expressed increasing concerns with regard to potential capital risk associated with growing positions and began to express cautions on the growing liquidity risk. additionally around this time the strategy significantly increased through security trades as being evaluated, given a profitability of the transactions and the importance of generating earnings. at this point i indicated to mr. corzine we would need to consult the board for approval and increase sovereign limits given increased materiality of the risk as related to the board's approved risk appetite. as such the decision was mad

corzine's statement on october 24th that everything is fine? having knowledge that senior management is working on a plan to go to the fox hole? >> yes, to the best of my knowledge, the break the glass scenario is really a contingency plan that would have been an intelligent thing to do under a number of different cases, in particular for a company that was just above investment grade. so i think that those, as i said, the break the glass scenario is something that was an intelligent contingency plan to be looking at. >> what prompted them to do that? it wasn't hey, it's october, why don't we put together a break the glass strategy. there had to be something that caused them to think that, wouldn't you think? that they needed to develop a plan like that? >> best of my recollection, it was a board request. again, i think, to find out some detail as to what the request and how it was prepared would have to be really directed towards our finance and treasury group who really drove that. >> i app

of course, the former head of mf global is jon corzine. kiko canseco asked michael roseman about his dismissal from mf global and the issues surrounding his dismissal. >> mr. roseman, you were told that you were no longer needed as chief risk officer of mf global in january of 2011. is that correct? >> yes, sir. >> okay. so the cro is an important job. i imagine in order to replace you, it would require at least a few months of a search process. do you know when mf global began to search for your replacement? >> i do not, sir. >> okay. in what month was your biggest disagreement with jon corzine over liquidity risk of european sovereign rtms? >> i would say the discussions started becoming much more material in september. >> okay. in what month was it that you made your presentation to the board saying that the board should not follow mr. core skin's advice to increase mf global's europe -- >> do you have an opinion whether or not your presentation had anything to do with your removal? >> as i said before, i'm really not in a position to r

corzine men and mr. corzine stated goals for this company, that they were moving, you know, for adding to proprietary becoming a full-service investment tanking company. and so, a lot of folks think that what it had either if you didn't understand that come he should have followed it up. but then as i'm sure you are aware in august than they failed a 10-q. and basically did you review the file? >> i am not aware. >> they did a 10-kilo in september, which detailed $100 million capital charge, which was related to the european rtm trades. >> that was a one-page document. that is not as far as i ran out of review analyst at the time. cannot that and a flag as an analyst in your firm to say you know what, what is up with this? we should go back and take a look at this. >> i don't believe so. but that document indicated was that cash b. required by mf global's with speed increased because that's a different interpretation being given to the exposure. it was a new information about the exposure, the rather cap

corzine and and mr. corzine's stated -- for this company that they were moving you know, or adding to, adding proprietary trading becoming a full-service investment banking company. and so a lot of folks think that either if you didn't understand that you should have followed it up but then i am sure you are aware in august they filed a 10-q and basically your analysts reviewed the 10-q filed and not as. >> i'm not aware that filing was reviewed. you are talking about the 10-q or the 10-q a? >> well they did a 10-q in september which detailed 150 million-dollar finra capital charge which was related to the european rtm trades. >> that was a one-page document. that was not as far as i know reviewed by the analyst at that time. >> but would that have been a flag to the analyst in your firm to say do you know what, what's up with this? we should go back and take a look at this. >> i don't believe so. i believe what that document indicated was the cash capital that was being required by mf globals regulator

corzine should answer. >> paul: jason, what's your betting on the supreme court case?rturn racial preferences? >> i think a majority of the court will limit them significantly, if not overturn them altogether. >> paul: okay, remember, if you have your own hit or miss, send it to us at ge rechlt@foxnews.com and

corzine and to the board. >> reporter: if m.f. global had not taken a huge $6 billion bet on european debt, roseman says, the company would still be here. roseman says his warnings helped cost him his job. michael stockman replaced roseman as chief risk officer, but said he was not hired to be a yes man. stockman insists he grew concerned last summer about the risk m.f. global was taking on. >> i found that the risks and rewards were acceptable, and then in july, i had a change of view. >> reporter: the ratings firms were next to feel the heat of congressional outrage. lawmakers demanded to know why moody's and standard and poor's waited so long to downgrade m.f. global. >> i don't know which one of you i should be more upset with-- the one who says, "it took me six months to get upset," or the one who said, "i didn't catch it in the first place, and as soon as i figured out i blew it in the first place, i got upset within a couple of days." both those answers stink. >> reporter: standard and poor's said m.f. global's chief financ

corzine. he was also on your board of directors?t know that until the immediate report came out. media report came out. >> you did not know that. ok. >> in ticket is an accounting issue. what is important is not whether or not the off-balance sheet, what is important is understanding the risk in the trade. >> you are saying it really did not matter? >> i think transparency is important. >> was this firm transparent about its off-balance sheet stuff? >> i think that mf global could have been more clear to the marketplace. >> yes or no. or they transparent about the off-balance sheet stuff? >> i take they could be more transparent than they were. >> with a transparent enough for you to know what was going on. >> once they file their 10k report, then we knew about the off-balance sheet exposure. >> if they had been more transparent -- mr. gellert, you took them down to a 29, which is equivalent to a ccc. what was your concern? >> drops in three of our sixth performance categories. their sales performance was dropping dramatically. thei

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you are going to hear on mainstream media, governor corzine, probably a hoboken resident. going to see them say, oh, their funds were returned. $70,000 him and wife contributed. he contributed $500,000. that is not going back. >> but it's play to play. big bunglers. they got in the white house and then they went bankrupt. >> goodrich people in the obama people and average people. demonizes the rich people but don't support him. but if you give him money. >> sean: you are a goodrich person. >> and what are you doing is so hypocritical but creating two classes. class warfare but making a class of the politically connected. >> sean: that get richer with taxpayer money at a time when people's homes are being foreclosed. look at the numbers, misery index is at a 28-year high. go back to the carter years, we had the worst housing year on record. cbo report, taxes going up 30%. four years consecutive. one trillion plus dollars. >> but the president push clean energy. i wonder why. every bun ghrer, how about tom conohan who received a lot of subsidies. he's got a wind farm. >> ken

next up on "kudlow," you know that $1.2 million vanished from jon corzine's mf global. well, that number's now going up. you'll hear how much when we check the news headlines right after the break. in america, we believe in a future that is better than today. since 1894, ameriprise financial has been working hard for their clients' futures. never taking a bailout. helping generations achieve dreams. buy homes. put their kids through college. retire how they want to. ameriprise. the strength of america's largest financial planning company. the heart of 10,000 advisors working with you, one-to-one. together, for your future. ♪ are you still sleeping? just wanted to check and make sure that we were on schedule. the first technology of its kind... mom and dad, i have great news. is now providing answers families need. siemens. answers. >>> revise the number that's missing from jon corzine's mf global. revise it upwards. kntv's scott budman joins with us more on that and all the latest breaking headlines coming into the cnbc newsroom. good evening, scott. >> well, good eveni

so his donors list was also revealed today and on it, former mf globele ceo jon corzine. advisors to solyndra, convince dense, bob. energy department advisor and steve wesley, venture capitalist. i thought they were bad people. my favorite, eva longoria is advising the president on immigration. gosh, i feel relieved she's driving that bus. go ahead, bob. >> what's wrong with that? i don't understand what's wrong with any of that. i can go through any of the republican list, i don't care which president it was or candidate, i can find you dirty people. these are a small percentage of people. >> if i give him money, i won't end up on his enemies list? >> he doesn't have an enemies list. you mentioned two so far. who else? >> the big banks have given him plenty of money and they're on his -- he basically -- actions that the administration takes don't necessarily help those guys. >> that's what i'm saying, they've given him money and don't get on a list. >> the enemies list is one story. the other story is releasing the list, a couple of them have been tied to scandalous thin

corzine in the board? >> yes, sir.n a series of meetings i became more concerned in particular in july. >> and that's and that's an area that she did in august, did you still feel like the company had the ability to meet the liquidity needs should the scenarios layout? >> i apologize. could you ask the question again? >> scenario three and four they cheated in august requires you spell out additional liquidity requirements should the scenarios layout. were you able to validate that if the scenarios to play out but there is sufficient liquidity to confirm to sustain the scenarios? >> i see what you're saying. sure, eventually these various discussions about other risk mitigation and particular increased liquidity scenarios were discussed and debated at the board, so i would have to sit just that it was information to senior management and board members and with the understanding that the scenarios could play out and liquidity would be

corzine, do you think he should be held liable for anything? >> that would be beyond my chance to -- >> you don't have an opinion? >> i don't have an opinion. >> okay. just say you don't have an opinion. do you think it's possibly negligence, maybe even gross negligence for a new risk officer to come in amidst all of these things going on and only spend one hour with mr. roseman, the former, the prior risk officer and in that one hour you didn't even speak about the risky positions? you don't think that's a little bit negligent? you're taking over as risk officer and all you spend is one hour and you didn't really speak about his concerns for the risk. >> we spoke briefly about the sovereign risk and -- >> i think you testified earlier that you didn't speak about that. >> no, we spoke -- as i mentioned, we spoke briefly in that -- and continued on that list of discussion was a touch on sovereign risk. >> a touch on sovereign ris snk. >> yeah. but more importantly, when i arrived at the firm, i did my own analysis, assessment of those risks and

where were they when jon corzine lost $1 billion of customer funds?emember, his washington regulatory wizards, they didn't prevent the financial meltdown. these folks have helped cause it and you had to bail them out. the president says, well, small americans, small town americans, we bitterly cling to our religion and our guns because we're just doggone frustrated with his pace of change. you say, i say, we say keep your change, we'll keep our god, our guns, our constitution. see, professor obama may have forgotten the bill of rights. but we shall not forsake it. including those rights that our founders risked their lives for. freedom of religion, our right to bear arms. we will rise up and defend them. the president believes your tax dollars should subsidize oh, planned parenthood. we believe -- we believe that every child is created equal, with that right to life. and i asked you to stand up for those who cannot stand for themselves. if not us, then who? thank you. the president believes that we need to consolidate power, centralize power, big powe

the firm, which was headed by former new jersey governor jon corzine, went bankrupt in october. it's alleged client funds were misused as the firm was collapsing. >> tom: indiana has joined the ranks of right-to-work states. it's the first state in a decade to do so and the first in the rust belt. right-to-work laws put an end to labor contracts that require non-union workers to pay fees for representation. supporters say the measure creates a pro-business climate, attracting employers and increasing jobs. opponents say it leads to lower wages and poorer quality jobs. growth and getting paid. those are two powerful incentives for investors looking for profits. tonight's "street critique" guest is going for both in two different areas. she's hilary kramer, author of "the little book of big profits from small stocks." before we talked about growth and getting paid, i got to ask you about a big stock with big profits, facebook. would you be a buyer in the second quarter when the shares come public? >> no way, tom. i've anecdotely asked 100 college students and they've told me the t

some other democrats on these cards, attorney ar eric holder, and former new jersey governor jon corzine. president obama talked about valentine's day today. he talked about the payroll tax cut, but he started off with just a note about today. >> good morning, and let me start with a quick public service announcement for all the gentlemen out there. today is valentine's day. doon do not forget. i speak from experience here. it is important that you remember this, and go bake. that's my advice. >> president obama today at an event dealing with the payroll tax cut. he later tweeted happy valentine's day to wife michelle. no word on how big he went. back with more on "washington today." >>> welcome back to washington today on c-span radio. defense secretary panetta and the leadership the defense department both military and civilian saying they remained unified behind a revised strategy that would shift the focus from the long wars to future challenges in asia, the middle east, cyberspace and the proposed budget for the fiscal year na begins october 1st. we'll have more on the budget later

this question of performance and reward and the bailouts, i don't know anyone except for maybe jon corzine and a few others on wall street who are happy with what had to be done in 2008. i know president bush wasn't. this was recognized by all as a massive deviation from what capitalism should all be about. massive deviation from what capitalism should all be about. done under necessity. and i don't think anyone, conservative or liberal, you know, would cry that much to say that those people, morally, should never have been bail ed out and were only bailed out because it was said to be necessary. it's something you do when you hold your nose. on the other hand, here's the point. we've held our our nose and we've done it. we know that in that sector, i think the profits that people make have very little claim morally to us. if you could just tax them, the people in that field, that part of the 1%, everyone would be happy. but, gee, that's not the whole 1%. i know people when they speak about this, the progressives always mention that, the places are you can see no connection between perform

also on capitol hill a former executive of the collapsed brokerage firm mf global said he warned jon corzine year before the company went under about some of the risks of making large bets on european government debt. the chief risk officer for the company told the subcommittee he raised the concern in october of 2010 just as the company's bets on the european debt approached $4 billion. he was let go a few months later and mf global then went under. in political news the associated press puts it this way. the kind of surprise twist you might see on donald trump's reality tv show. instead of taking place right in the middle of the republican presidential race it's happening right now, something you might see on television, republican officials saying donald trump has endorsed mitt romney. we heard the announcement earlier in the day. newt gingrich campaign thought the endorsement was going to go to newt gingrich. in fact the campaign leaked earlier donald trump would in fact endorse the former house speaker in what was a seven minute ceremony in las vegas, an event with mitt romney and donal

they brought jon corzine on and so he's one of the smartest guys to help us with stimulus.g for it. they may have found it, but they're still looking for what he did with a billion point 2 of depositors' money at mf global. another guy we find out is a big bundler for obama, steve spinner, you know about solyndra. he was involved in acquiring the solyndra $535 million loan. steve spinner's wife was an attorney who signed off on the loan documents for solyndra and now that's another bundler. there is a lot of transparency issues and a lot of -- >> brian: gas is up 30 cents a gallon. >> i got to say, guys, gas is going to have to go a heck of a lot higher before that car makes sense. >> gretchen: i'm going to look directly at you for sure the next time you're on this couch. i will never take my eyes off you. >> steve: we're going to be watching you today on "the five" right here on the fox news channel. >> gretchen: good thing i'm going to kick often the headlines right now. let's tell but this story. the u.s. military's ten-year long combat mission in afghanistan could be en

remember this firm headed up by former new jersey governor jon corzine?jon corzine has been subpoenaed to come before congress and he has done so and said he didn't know where the money went. people briefed on the matter tell the a.p. this money has been tracked to other customer accounts and banks, not sure what mat means. the allegation was that they were taking money that folks had invested in bad investments like european debt, and using money from another side of the business where clients investment accounts to cover those losses. but we are not sure what this means. they say they may know what happened to the money, whether what happened was legal, we'll find out. more and more money is going missing from consumers as gas prices shoot through the roof. triple aaa says the national average for a gallon of regular gasoline is $3.45. compare that to last month when it was nearly 20 cents lower. what's going on? >> reporter: it may surprise to you hear this. it could be worse, believe it or not. but it's not this week and here's why. we have high suppl

corzine and others.owever the risk scenarios for challenges that were impossible and at the end of 2010 board meeting, i presented it two request along with a detailed analysis of potential liquidity risk stress scenarios park ave include potential variation for price changes of securities and as well as potential initial margin calls. the scenarios with the sovereign those across all sovereign and counterparties and provide the analysis of the market to highlight the significant capital risk associated with unresolved issues in europe. during the meeting of risks were debated and challenged by some members of the board has not been plausible. ultimately conditioned on the limits which is why i left the company i would be happy to answer the committee questions. >> you are recognize. >> chairman neugebauer, ranking member representative capuano and members of the subcommittee, a figure for the opportunity to make this brief statement. i am deeply saddened by the bankruptcy of the math global and the impa

senator and governor clashed over corzine's aggressive investments in european sovereign debt.el stockman was brought in somewhat diminished role but he eventually raised similar concerns investigators say. in his prepared statement this morning roseman testified and i quote, late october 2011 shortly before global global collapse i recall mf global's european sovereign debt positions with were approaching 3.4 to 5 billion dollars. at think point he testified not only concerned about the capital risk but given the size i was concerned with the liquidity risks. he had added i discussedkers about the positions however the risk scenarios i presented were challenged as being implausible. under the investment microscope the rates agency moody's. it was their decision to downgrade mf global to junk bond status a week before the firm filed for bankruptcy that set in motion investigators described as a classic run on the bank and sealed the firm's fate. however lawmakers will press a top moody's officer why the firm took so long to detect the internal problems at mf global. jon. jon: w

corzine and is also on your board of directors? >> i didn't know that, sir. i didn't know that before the report came out? >> you didn't know that, okay. is it ethical, this off-balance-sheet trading, have i questioned i think you're sitting here for mr. stockman, is that ethical? >> i think it's an accounting issue and what's important is it wasn't not the trade is off-balance sheet. what's important is understanding the risk that is in the trade but i do think as i said earlier -- >> you are saying it didn't matter that enron was trading on what, 27 of its 60 billion -- >> i think transparency is important. >> okay, was this from transparent? was in a transparent about its off-balance sheet stuffed? >> i think mf could've been more clear to the marketplace around speeders on just asking yes or no. with a transparent about off-balance-sheet stuff? >> they could've been more transparent than they were. >> with a transfer enough for you to know what was going on? >> once they file their 10-k report in may, then we know about the off-balance-sheet exposure. bef