limits on leverage so once you get the money there you can leverage it practically to infinity and john corazon being again i've never met the man but from what i've read vanity fair and elsewhere having an extremely large ego and being almost addictive in terms of his trading style wanted to get as big as he could get with almost really no trading capital you know and with global it was it was a small stodgy growth rate for him to do very good job brokerage wise but they didn't have the capital to support those kind of trades so he wound up taking a little bit of capital that they have a lot of capital that was on their books that was ours that was customer funds moving into london leveraging up through the repos keeping it off the balance sheet and hiding it from regulators and from their accounts until about august until finra kind of caught them already in this very exposed position and you know that's in essence what happened do you think that if it's found that j.p. morgan does have this customer money there's any way that you guys can legally get it back and do you think j.p. morgan bein

global now we have followed the john corazon line quite extensively on this show but now let's talk about this why on earth would the trustee want to pay out bonuses to executives of a firm that went bankrupt taking one point six billion dollars in customer money with it at least in the sense that money is still missing so we can just go with that or now here to talk about that is someone from the futures industry he is a veteran of the industry has been following this very closely on the trail martin the lead host of the uncorrelated investing show and author of this book you see here high performance managed futures and we've had you on for it's nice to have you here in washington d.c. thanks for being on the show good to see you so now we have talked about the john corazon angle extensively and i talked about the globe. angle with you now i want to talk about the too big to fail angle because i'm available wasn't to develop a did fail and obviously there is that too big a bill angle and that junk or zine is goldman sachs alum and very connected if there is a typical fail angle in this

you for having me so let's get into this entire and most global scandal that we've been seeing john corazon was on capitol hill he was testifying before congress you do that after you swear an oath and we have a little a little tidbit of what he said when he was there take a listen. i simply cannot know where the money is or why the accounts of not been reconciled to. so what we don't have the takeaway from that is him saying i don't know where the money is which is what we've seen with this ok everybody that i've spoken to because obviously at the purview are that are new to this story the issue here is m.f. global went bankrupt and one point six billion dollar spent customer money is missing ok customer money from segregated accounts like a bank account a loan it's not supposed to be taken and used by a brokerage firm that is sacrosanct that is against the regulations i mean this is it caused a massive amount of. just u.s. markets and faith in u.s. markets from all over the world so this is it has a really large implications it's a really big deal there you have course i'm saying i don't

canadian so i don't fully understand american law but i can learn lester make a citizens arrest of john corazon and use the overwhelming evidence and previous precedent set by courts in the s. and l. scandals of the past. and i like it we're going to look into it maybe i can see if bill black who's been a guest could help me out with that one and one thousand nine hundred eight a west wrote us about yesterday's capital account we did a segment on alan greenspan we talked about his and rand influence and said another great show guest is entirely wrong about greenspan being a rand acolyte he was a free market capitalist and gold standard proponent many moons ago but he completely sold out as chair and you know we actually we made our point we question our guest about that we agree with your assessment of the rand greenspan situation but since we're on it we thought we leave you with this very bizarre anecdote about greenspan's old days when he was reportedly close with an rand and she basically went off the rails over a married man named brandon whom she had an affair with and excommunicated him

global john corazon made that direct order to transfer customer funds to the tune of two hundred million dollars to j.p. morgan in london before the firm went bankrupt this should be a game changer we'll talk about it with our guests but now let's get to ben bernanke it's been a busy week in the spotlight for the federal reserve chairman today ben bernanke you spoke at the opening of of that conference in washington with other central bankers but this rounds out a week where he gave two lectures in his college class the first ever taught by a sitting fed chairman live stream for everyone to see not just the students that got the spot there now you could call it class or you could call it indoctrination or an attempt to rewrite history or a p.r. offensive in the face of that criticism regardless it's friday so we have some time we took some time to look at his lesson plan with more scrutiny and yesterday he tackled the issue of the housing bubble and the debate over the role of the fed's loose monetary policy in creating it so here is professor bernie accompanied by his power point slide

rehabilitation doesn't really exist unless i says as what color is it what days of i don't know i'm john corazon i can afford just going take a tinkle to the bathroom i don't know the difference i'm a frickin cook i get it doesn't matter i don't go to jail why because i pay i pay obama money i pay the people going and i take care of our money therefore i'm innocent i'm innocent because i pay the money that is not at all to bated that certain whether the money is worth says that's on certain but the fact that he's money in bribes and pays people involved ministration plods these graphs he's a crook that is certain. exactly so he's just standing his ground max you know he had directly ordered a different brian to transfer two hundred million to j.p. morgan in london where tony blair is the international advisor of course for j.p. morgan london well of course on the former senator and governor of new jersey prior to that the former c.e.o. of goldman sachs he ordered this transfer now just basically what happened is he just o'brian transferred the money from a segregated client account to the m.f. g

senator also new jersey governor john corazon well james to les is our guest he's a lawyer representing eight thousand and the global customers in the bankruptcy proceedings pro bono mind you so he tells me and he has told me that any new u.s. regulations won't be very effective as long as firms can just skirt them skirt u.s. regulators by going through the united kingdom where they can take on essentially on limited leverage in the first place this was what m.f. global was doing this was what she was doing back in two thousand and eight this is what lehman brothers did through its english subsidiary to notice any similarity all of those firms imploded now bear with me because i have to break down a few things so that you can get the most out of my guest breaking down all of this first you need to know that there is reportedly no regulation t. equivalent in the u.k. or reg as it's known so reg t. is the federal reserve board regulation that governs customer cash accounts and the amount of credit their brokerage firms and dealers may extend to customers for the purchase of securities now

and you know get a straight answer out of the guy and you know none of us believes that john corazon is innocent of middle few cents here nobody who's competent or who is a financial professional so you mentioned congress but i want to stick on regulators for one more moment because it seems like with this example you gave us our brains oxley it seems like you have a disaster like enron and then you have an effort to regulate so that it doesn't happen again like with sarbanes oxley and then you have the same practices they continue and post enron go unpunished so my question for you what is the point of regulation f. they're not enforced is it just person oh yes it is for show it looks as if the regulators are there to protect the bad guys we didn't hold c.e.o.'s of our major banks accountable for accounting statements that they signed off on in two thousand and seven that were false and these are c.e.o.'s of large. too big to fail institutions that's correct h.s.b.c. took a six billion dollars right tone. for the fourth quarter of two thousand and six they took it right on and reall

john corazon gave direct instructions did you hear that direct instructions himself to transfer two hundred million dollars from a customer fund account to meet an overdraft and one of the brokerages j.p. morgan chase accounts in london this is big news we'll talk about it let's get to today's capital account. so as i just said we have gotten news bloomberg news obtained a memo drafted by congressional investors that according to an e-mail. sent by a firm executive at m.f. global jon made that direct order to transfer customer funds to the tune of two hundred million dollars to j.p. morgan in london before the firm went bankrupt this should be a game changer we'll talk about it with our guests but now let's get to ben bernanke it's been a busy week in the spotlight for the federal reserve chairman today ben bernanke you spoke at the opening of a fed conference in washington with other central bankers this rounds out a week where he gave two lectures in his college class the first ever talk by a sitting fed chairman live streams for everyone to see not just the students they got the spot the

thanks for being on the show it is too good to see you so now we have talked about the john corazon angle extensively and i talked about that. global angle with you now i want to talk about the too big to fail angle because and the global wasn't too big to fail it did fail obviously there is that too big to fail angle and that junk or zine is goldman sachs alum and very connected but there is a too big to fail angle in this story and i want us to set that up i want to play a sound bite from john course i'm talking about customer money to put it in context but back office in chicago explicitly confirm for me that the funds were properly transferred and i understood that j.p. morgan chase was satisfied since he executed billions of truly billions of dollars of traits with m.f. global. they sure did and j.p. morgan with m.f. global's the largest creditor brand the documentation i've seen is j.p. morgan as much of a story here as m.f. global and how so well it's a fascinating angle that's for certain a j.p. morgan had a number of conflicted rules that were could still be and. cleared and sett

big to fail angle in this story and i want us to set that up i want to play a sound bite from john corazon talking about customer money to put it in context. the park office in chicago explicitly confirmed to me that the phones were properly transferred and i understood that the morgan chase was satisfied since the executed billions of troops billions of dollars of troops with m.f. global they sure did and j.p. morgan with m.f. global's largest creditor ran the documentation i've seen is j.p. morgan as much of a story here as m.f. global and how so well it's a fascinating about for certain j.p. morgan had a number of conflicted rules that were stored in. clear and settled the trades so they were in a position to pretty much see everything that was going on and probably better than us in the futures industry and in the futures industry there was significant talk about what was going on and what transpired that week before the bankruptcy that is not being made transparent to us and what is that and what role do you think in morgan has and well for one well there are a number of of angles tha

about this that too big to fail angle but jen rogers there is the too big to fail thread there is john corazon you is the head of goldman sachs as you pointed out very politically connected that is see if he see one of the regulators also former goldman sachs the largest creditor j.p. morgan my question to you has too big to fail allowed created a corollary which is to small to succeed which means if you're a small firm a small investor not as politically connected not as systemically important institution or firm but you're just simply too small to sixty. if you are small or those of our play by the rules do or are as the you can make the best successes in america in the world not just in america but nearly everywhere in the world to go to war you play by the rules and if you're smart and it was a great success i don't know mr rogers not everyone is as smart as you and when i hear a lot of small firms are being crippled by zero percent interest rates for example . that's a different story as an atari it was it makes it very hard to break in body printed by smart or dumb and it doesn't let it

minutes yeah if i surmise if you can occur john chorus line well it isn't it just to make to remind our audience of all of those connections you have corazon who has been a bundler for obama he way he goes and testifies before members of congress those were his former colleagues of them because he was a member of congress you have again the goldman sachs connection you have there's sound bites of vice president biden saying when they have a problem when they're figuring out how to solve it economically they call up john whereas i you know so it's really throughout this whole thing obviously we don't know exactly what i care but it's important but i didn't being the genius that he is if you look at those sound bites both obama and biden attributed the stimulus plan through to the genius idea of john course right but of course biden always has to go over the top if you play back those videos which are available on he calls were one of those people he's met. and still ahead where did you end up global customers think their missing money is and do they stand a chance against that screw big to fail interest in getting it back we'll have more wi

john paul rivera. >> y aquÍ tenemos una muÑeca, ana camila de ponce, puerto rico, sus padres me pidieron que te diga que te aman mucho. >> mande un beso a emiliano. >> te queremos con todo el corazÓnon angelic boyer. >> y la primavera estÁ a la vuelta de la esquina y la entrenadora claudia molina nos enseÑa a ponernos en forma, ya regresamos! >> y miren esto! les vamos a mostrar la sorpresan lo que jorge ramos revelÓ! esta tarde, , en primer @@ica impacto.el presidente evo morales hizo historia en los carnavales de bolivia!! su inspiración lo llevó a crear unas coplas tan machistas, que indignaron a todas las mujeres!! #@@ deunivndespa amerua tambiÉn @@despierta americauniv tremendo elenco.ision >> a quiÉn no le va tan bien en el amor es a eva longoria que no estÁ con eduardo cruz, el hermano de penÉlope despcruz.det >> despierta americaunivision@@e las audiciones, ericavimos univisando @@despier invitada en la audiciÓn de los Ángeles. >> luis miguel no deja una! >> hola, hola! >> perdÓn que los interrumpo, pero queremos hablar con argelia. >> nÚmero uno en los angeles. el talento de los Ángeles, está muy bueno, creo que fui objetiva, creo firmemente que van a mejorar, ya estando

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