. >> jon corzine was betting on a bailout. he was betting that the relatively risky parts of europe would become less risky. he basically made a goldman-sized bet at a firm that was only a sliver of goldman's size. >> the firm's stock is getting crushed yet again this morning, and mf's credit rating was cut to junk by moody's overnight. >> how can something like this be allowed to happen? how can n e individu completely shape the destiny of this firm and ultimately its demise? >> these two stories on this special ededion ontline. >> frontline is made possible by contributions to your pbs station from viewers like you. thank you. and by the cporation for public broadsting. major funding is provided by the john d. and catherine t. macarthur foundation, committed to building a more just, verdant, and peaceful world. and by reva and david logan, committed to investigative journalism as the guardian of the public interest. additional funding is provided by the park foundation, dedicated to heightening public awareness of critical i

the first was mf global run by former new jersey senator jon corzine.e than $1 billion is unaccounted for and regulators are considering cracking down on commodity firms which comes too late in cedar falls. >> i don't know it reaches into the community when so much effort going into character here it is sort of shocking. >> now a pillar of the community sits behind bars. charged with making false statements to regulators. prosecutors say additional charges are likely. allegations of white collar fraud come home to roost right here in iowa. scott cohen, cedar falls, iowa. >>> we are back in a moment with a strange sight in the air today, and one man's unbelievable labor of love for his wife. >>> what a show in the skies over paris tonight. a spectacular fireworks display over the eiffel tower to celebrate bastille day marking the start of the french revolution. >>> in london while we are dealing with the severe drought here at home, they are dealing with the opposite problem while they get ready for the olympics in just two weeks. day after day of rain.

approved the so-called "corzine rule" to protect customer funds at breragfirm it's named after jon corzine. the former c.e.o. of failed brokerage m.f. global. the rule requires a firm's chief executive to sign off on big withdrawals from customer accounts. >> for the third year in a row some are worried about a global sdmk slowdown. stay on the defense. jasob is back with us investor of strategy with us in philadelphia. jason. the scare is over the past couple of years ended with a nice fall rally for stocks. could it be the same this fall? >> yeah, we did think eventually we may see the monetary policy come in more sig kantdly, but in the near term basis economic indicators continue to point in a negative direction indicating that we'll see further weakness, and the reality is in order to get the federal reserve and other central banks that we want to have in order to get that lift in the equity market, we might have to see some further weakness in the economy first, and for that reason, we're remaining more on the defensive line. >> tom: and you're looking to consumers to stay defensive

global and jon corzine who headed that up and we know the reason, perhaps, why.nds" hour two for a friday starts right now! ♪ fast cars on a summer night ♪ endless summer >> you're looking at the great summer tunes there, aaron lewis is with us and he's a super interesting guy because he was a rock star in the band stain'd and he just made the switch to country star. we'll talk to him about that transition and how his life has changed. >> you will be talking to him live because you would prefer to be a musician rather than be on the couch with us. >> only thing that prevented me from becoming a rock star was complete lack of talent. >> did you even take band in fourth grade? did you pick an instrument? >> does cello count? >> i believe it can. >> there's always room for cello. >> it's hard to fit under your chin. >> side ways. yeah. >> good to have you in today for gretch. she's on vacation. >> thank you so much, colonel sanders. let's move on. let's move on. >> was that a seersucker joke or because i smell like chicken? >> a little bit. like batter! >> let's mov

jon corzine spent 63 million. then extrapolate to the whole political system because of the supreme court. i know you one to questions. richard nixon watergate to carrying satchels of cash around the country is outraged to put limits on campaign spending. you cannot limit the amount of money a person spends with his third campaign because that is to limit that person's right to free speech. running for congress today what is the first thing the congressional committee will say? can you raise the money? and who can write the check have the advantage. the supreme court made another ruling reversed a loss since put in existence by a teddy roosevelt prohibiting corporate contributions. building on the supreme court interpretation joy petition that corporations are really people come of the supreme court and 2010 said because corporations are people under the law of day cannot be limited to the right of free speech and limiting the money would do that. a corporation could spend as much on politics. ladies and gentlemen

supporters against john corzon of course they're going to go against for anyone who is up against jon corzinenut nut who had no excitement without mitt romney who said, this guy is not the right guy does not mean that romney is going to listen to them. >> cenk: here's his other choices. to me, if i were romney, i would say, i got to create excitement on this campaign, and who am i going to do it with, polenti? please polenti? >> yes yes. you're not going to create excitement with polenti. mitt romney may not want to create excitement. he may be the steady as she goes candidate. he wants someone who is like me, conservative, and who can speak to the conservatives in the party for those who doubt me. >> cenk: i want to go to b-11, guys. this is about romney's taxes. he came out early in the primary and said, come on, go ahead and release it. bad move. look at this. he's on tape. >> i release my tax returns every year when i file them. if governor romney were to ask me my advice get the stuff out there. even if it's news that people are interested in. if they're interested in your tax returns an

money that was flown through new york by the billion to a lesser degree, the scandal involving jon corzine his company and what questions did chase asked or not ask when dealing with them. there is clearly and laxity among all the banks and asking enough questions about where money is coming from. i suspect the hsbc scandal will help spread awareness in that regard as well. >> what is the solution, matt taibbi? >> to the libor situation? >> yes, and overall -- >> to the creek banks through >> into the administration, shoring up and supporting and protecting? >> the libor scandal creates the mother of all regulatory dilemmas because this scandal could not have happened if it was just one or two or even three banks acting as rogue participants. the way libor works, they take 16 banks every day, take the four has numbers and the four lowest numbers and throw them out. they average the remaining numbers. that is pretty much all the banks have to be in on it in order to move the needle in any one direction. you're talking about 16 of the world's most powerful financial institutions. if there ar

. >> jon corzine thought he'd like to run against chris christie, too. >> sure. but in new jersey chris christie can play. he himself knows. he doesn't want to go national. >> for a republican to win in new jersey it does say something before you write christie off completely. >> sure. next president and mitt trade shots over outsourcing, we'll put it in the spin as it rolls on for manic monday july 16th. [ female announcer ] the power of green coffee extract is now in our new starbucks refreshers™ -- a breakthrough in natural energy. made with real fruit, starbucks refreshers™ are delicious low calorie drinks you can feel good about. ♪ rethink how you re-energize. ♪ get a boost of natural energy with a new starbucks refreshers™, in three ways. natural energy from green coffee extract, only from starbucks. ♪ ♪ ♪ ♪ ♪ [ dog ] we found it together.upbeat ] on a walk, walk, walk. love to walk. yeah, we found that wonderful thing. and you smiled. and threw it. and i decided i would never, ever leave it anywhere. because that wonderful, bouncy, roll-around thing... had

inaction of the administration or of congress and their behaving as unethically as what happened with jon corzine, you know, people are going to -- we're going to have people taking it to the streets the way they did after the rodney king conviction. >> what do you make of the health care debate that's been raised? i had michele bachmann on last night. you know, i put it to her. in terms of ideology of the argument here, what is the difference really for most americaork, it costs $15 a pack a when you get sick 30 years from now, piers and billy shouldn't have to pay for that. if you opt oh out and don't want insurance and then go crawling into the hospital or doctor's office or emergency room with your 7 or 8-year-old child and all of a sudden you're like, oops, i made a mistake, that has to be paid for by somebody and it's not going to be you and i. i th >> would you? >> no. no. no. you know, i wish him well. i don't think he's the right guy for the job. i don't think he's the best man for the job. i have great admiration for some of the things that he's been able to achieve. i think his handlin

fox news contributor and former communications director for new jersey, former new jersey senator jon corzine and da neen barelli is a fox news contributor and author of the book "backlash". welcome to you both. let me start with you. you heard pam bondi basically explain the republican position calling the health care plan junk. a huge tax increase. how do the republicans get traction in their vow to try to repeal it? >> that's just it. there is traction here because what we have is a classic example of government gone wild and you know what, eric? the american people are sick and tired of it. we have a supreme court justice who basically is playing politics really. this is clearly a tax on the american people. the last thing you want to do is implement more taxes on hard working americans. and so clearly, i think there is a lot of traction here to repeal this initiative because it's not popular with the american people. it is a tax. it wasn't sold as a tax. and that is what we're facing today. >> julie, in your view, is it a tax? how do you think that will impact the president? >> justice r

. >> we haven't really seen the kind of scrutiny on jon corzine at mf global. that's for another conversation. >> that's for a political conversation. >> let me get one final question, a different topic. you mentioned facebook. there's been conflicting reports this week facebook is still considering switching exchanges from the nasdaq to the new york stock exchange. as former ceo of the big board, would such a switch benefit facebook? if you're nasdaq, what do you do to prevent this from happening? what a foul-up that ipo was from the open. >> it was not just a full-up, but a terrible disappointment to consumers across all markets and all products. we have the gm ipo, which went flawlessly at the new york stock exchange. your would have thought nasdaq would have taken that as a case study and used the methodology that produced an absolutely seamless gm introduction in the market in the facebook introduction. they didn't. they wanted to do it their own way. and in failing, they not only hurt facebook, they hurt the entire market structure. i could never understa

inaction of the administration or of congress and their behaving as unethically as what happened with jon corzine, you know, people are going to -- we're going to have people taking it to the streets the way they did after the rodney king conviction. >> what do you make of the health care debate that's been raised? i had michele bachmann on last night. you know, i put it to her. in terms of ideology of the argument here, what is the difference really for most americans between being made to have car insurance and being made to have health insurance? >> you know, my opinion on that is, i don't think that they should be forced to have health insurance but if they don't and they are penalized for that, i have no problem with it. i don't care if you want to call it a tax or if they upheld it in the supreme court calling it a tax. if you buy a pack of cigarettes in new york, it costs $15 a pack a when you get sick 30 years from now, piers and billy shouldn't have to pay for that. if you opt oh out and don't want insurance and then go crawling into the hospital or doctor's office or emergency room with

jon corzine use $1 billion of funding to quote unquote rehire teachers. you suppose use over two years but the use of india because the year before his reelection and i was left with a billion dollars hole afterward. and i had to cut $820 million for my k-12 education program in fiscal year 2011 to balance my budget. and the fact is that unless we're going to do is federalize the states, that you're going to pay for everything, you continue to give us this money, we spend and hire people for a finite period of time, and then these localities and the states are on the and to pay for them beyond the time of the subsidy. where's that money coming from? you know, i of the highest property taxes in america to begin with, and nowhere is this money go to come from to pay these folks afterwards? i just don't see it. new jersey today has fewer employees. we did without any less. we did it through attrition. while there've been some layoffs at the local level because of pressures on the local level i don't think that's a bad thing. it's incredible when anybody lose

barak obama got the house of his dreams 300,000 below the pricestove steve jon corzine, president obama'swhat about this guy. >> he was the president's financial guru. and a colleague of obama when he was in the wall street. and he was the president's chief bundler and raised over $500,000 and very close to obama. >> steve: and the guyed hading up mf global was republican he would be in jail. >> bottom line wall street has supported democrats in recent years than republicans and wall street is equal opportunity influence. steve stove main stream media didn't pay attention to bill ayers ask fellow woored member and self confessed terrorist. >> hoe announced he was unrepentant. the day of the bombings of the world trade the obama campaign did not tell the truth when asked about bill ayers and acorn . we know they misled the media. bill ayers is some guy in the neighborhood. he attend a queue - barbque. >> steve: why didn't mccane into it? >> if we are going to obsess about which month in 1999 mitt romney left bain capital, we should you gut all candidates and the vetting was not done in 200

. >> doesn't that cut two ways as we saw with mf global and jon corzine with electronic transfer thatf they decide to move without even, i think, talking to the cfo i think was one of the things we learned. you can move fast here. that's also the problem, isn't it? >> well, that's part of the solution. if you're getting things from a third party that are very difficult to duplicate in a fraudulent way, you can start to catch this stuff in monthly and quarterly increments. because 12 to 14 months is going to be a tough one. i think the calendar colluded with the fraud that seems to have occurred at pfg. >> for sure, rick. thank you very much. rick santelli. we'll come back to you in a bit. >>> coming up next, on morgan stanley smith barney's chief investment officer thinks even if we get -- by the end of the summer, it won't help the lackluster economy. we'll discuss that right after this. tdd#: 1-800-345-2550 tdd#: 1-800-345-2550 let's talk about that 401(k) you picked up back in the '80s. tdd#: 1-800-345-2550 like a lot of things, the market has changed, tdd#: 1-800-345-2550 and your

taking a nonparticipating roll the money to step aside from his relationship with john karzai -- jon corzine. made it clear that he wanted to keep control of the recommendations that came out. where are the recommendations that stakeholders and others me confidence in the system. he called for using the most innovative and least burdensome tools to meet the regulatory and ends laid out. they should be focused on doing exactly that and overseeing the rules on the books rather than looking for justification to regulate the world. with regulations we have seen are not enforceable by law. i look forward to hearing from the chairmen on how the land the spaceship and how we plan to cftc.with the >> where lot of things to discuss. we welcome both of you for being here today. let me introduce our first ler.list, gary again flagens prior to his appointment he held to positions with the treasury under the clinton administration. he served as undersecretary of the treasury for domestic finance and assistant treasurer for financial markets. we welcome chairman gensler. let me introduce robert cook. mr.