al qaeda and the arabian peninsula ari cosper can turn for many reasons, including the fact that it potentially creates a sanctuary for planning of external operations. my question is what the intelligence community's assessment of a few aps territorial gains in southern yemen and has that provided planning and training space for potential aqap extra call application? >> we're very concerned about that to the extent we provide a haven for training facilities. we are monitoring very carefully and also watching i think it's interesting when terrorist groups like al qaeda and aqap all of a sudden has municipal responsibilities than just how they deal with that, whether that would be a distraction to their foreign plotting. i think aqap is one of the al qaeda franchises probably the organization we are most concerned about in terms of potential threats to europe for the homeland. >> what is your assessment of the many security service to confront aqap and retain the governments controlled this space? >> at this point we continue to have good cooperation with the yemeni intelligence and security org

cosper, the money -- mr. capone is money that he has put on the security, please simplify down where we can understand that. >> basically, congressman capuano would have a security -- >> that he transferred to you -- >> that he transferred to you for cash to. >> and so the repo account -- >> and that the same time he entered into an agreement -- >> so the repo account takes on security that security and sets it over here and borrows money against it? >> that is correct. >> and then we buy another security for someone else for ourselves so -- >> he's done something with the money that you had, right? >> they would do something -- >> but at the same time you enter into a poor purchase commitment. >> yeah, but this is all part of legalities that are part of the line. i take money that he gives me and i trade that security to someone else to get cash, right? and i still have control that i get cash, right? and i bring that cash back in those mf global accounts -- they were keeping it in jp morgan's bank. they are

cosper, you are recognized for five minute. >> members of the subcommittee my name is susan cosper and 9 technical director of the financial accounting standards board. i oversee the staff associated with the project on the board's technical agenda. i would like to thank you for this opportunity to participate in this important hearing. i understand the subcommittee would like to explain the current accounting and reporting of repurchase agreements. i will do my best to do so. and would like to give a brief overview of the manner in which accounting standards. the private sector organization which operates on the oversight of the financial accounting foundation and securities and exchange commission. since 1973 establish standards of financial accounting and reporting for public and private entities. those standards are recognized as authoritatively generally except accounting principles by the sec for public companies and the american institute of certified public accountants and other non-governmental and disease. independent process is the best means of ensuring high-quality account

cosper, on the rules, now, so i've got the money. i get mr. capuano's money on the buy list security that he's asked me. is that basically the initial transaction? >> trying to simplify some people at that can understand. islamic basically, congressman capuano would have the security say and we bought this for you for cash. >> at the same time he's entered into an agreement to repurchase. >> it takes the same security and sense of over here and borrows money back against it. and then we by another security for someone else or ourselves. >> you've done something with the money that you've got >> they would do something. at the same time, you enter into the poor purchase commitment. >> there's all sorts of legalities of the bottom of the line. i take money that he gives me and i buy a security and trade that to someone else to get cash, right? and i still love control over it but i get cash, right? i bring the cash backend mnf global money in the bank they were not keeping it in jpmorgan, they were then doing something else. they were buying som